Report No. 12
242. Period for commencing recovery proceedings.-
Save in accordance with the provisions of section 183 [Section 42(1)] or 229(6) [second proviso to section 45], and except as otherwise provided in section 241(5) [new sub-section in section 46A, laying down a limit of 2 years], no proceedings for the recovery of any sum payable under this Act shall be commenced after the expiration of one year from the last day of the financial year in which the demand is made, or, in the case of a person who is deemed to be an assessee in default under any provision of this Act, after the expiration of one year from the last day of the financial year in which that Income-tax Officer sends an intimation in writing to such person to the effect that he is deemed to be an assessee in default:
[Section 46(7), main para.]
Provided that the period of one year referred to above shall be reckoned-
(i) where an assessee has been treated as not being in default under section 229(5) [section 45, 1st proviso] as long as his appeal if undisposed of, from the last day of the financial year in which the appeal is disposed of;
(ii) where recovery proceedings in any case have been stayed by any order of a court, from the last day of the financial year in which the order is withdrawn;
(iii) where the date of payment of tax has been extended by an Income-tax authority to another date, from the last day of the financial year in which such other date falls;
(iv) where the sum payable is allowed to be paid by instalments, from the last day of the financial year in which the last of such instalments is due.
[Section 46(7), 1st proviso]
Explanation.-A proceeding for the recovery of any sum shall be deemed to have commenced within the meaning of this section, if some action is taken to recover the whole or any part of the sum within the period herein before referred to.
[Section 46(7), Explanation, earlier half]
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