6. Tax authorities.—(1) The income-tax authorities specified in section 116 of the Income-tax Act
shall be the tax authorities for the purposes of this Act.
(2) Every such authority shall exercise the powers and perform the functions of a tax authority under
this Act in respect of any person within his jurisdiction.
(3) Subject to the provisions of sub-section (4), the jurisdiction of a tax authority under this Act shall
be the same as he has under the Income-tax Act by virtue of orders or directions issued under section 120
of that Act (including orders or directions assigning the concurrent jurisdiction) or under any other
provision of that Act.
(4) The tax authority having jurisdiction in relation to an assessee who has no income assessable to
income-tax under the Income-tax Act shall be the tax authority having jurisdiction in respect of the area in
which the assessee resides or carries on its business or has its principal place of business.
(5) Section 118 of the Income-tax Act and any notification issued thereunder shall apply in relation to
the control of tax authorities as they apply in relation to the control of the corresponding income-tax
authorities, except to the extent to which the Board may, by notification in the Official Gazette, otherwise
direct in respect of any tax authority.
7. Change of incumbent.—(1) The tax authority who succeeds another authority as a result of
change in jurisdiction or for any other reason, shall continue the proceedings from the stage at which it
was left by his predecessor.
(2) The assessee in such a case may be given an opportunity of being heard, if he so requests in
writing, before passing any order in his case.
8. Powers regarding discovery and production of evidence.— (1) The prescribed tax authorities
shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil
Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:—
(a) discovery and inspection;
(b) enforcing the attendance of any person, including any officer of a banking company and
examining him on oath;
(c) compelling the production of books of account and other documents; and
(d) issuing commissions.
(2) For the purposes of making any inquiry or investigation, the prescribed tax authority shall be
vested with the powers referred to in sub-section (1), whether or not any proceedings are pending before
it.
(3) Any tax authority prescribed for the purposes of sub-section (1) or sub-section (2) may, subject to
the rules made in this behalf, impound any books of account or other documents produced before it and
retain them in its custody for such period as it thinks fit.
(4) Any tax authority below the rank of Commissioner shall not—
(a) impound any books of account or other documents without recording his reasons for doing so;
or
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(b) retain in his custody any such books or documents for a period exceeding thirty days without
obtaining the approval of the Principal Chief Commissioner or the Chief Commissioner or the
Principal Commissioner or the Commissioner.
9. Proceedings before tax authorities to be judicial proceedings.— (1) Any proceeding under this
Act before a tax authority shall be deemed to be a judicial proceeding within the meaning of section 193
and section 228 and for the purposes of section 196 of the Indian Penal Code (45 of 1860).
(2) Every tax authority shall be deemed to be a civil court for the purposes of section 195, but not for
the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
10. Assessment.—(1) For the purposes of making an assessment or reassessment under this Act, the
Assessing Officer may, on receipt of an information from an income-tax authority under the Income-tax
Act or any other authority under any law for the time being in force or on coming of any information to
his notice, serve on any person, a notice requiring him on a date to be specified to produce or cause to be
produced such accounts or documents or evidence as the Assessing Officer may require for the purposes
of this Act and may, from time to time, serve further notices requiring the production of such other
accounts or documents or evidence as he may require.
(2) The Assessing Officer may make such inquiry, as he considers necessary, for the purpose of
obtaining full information in respect of undisclosed foreign income and asset of any person for the
relevant financial year or years.
(3) The Assessing Officer, after considering such accounts, documents or evidence, as he has
obtained under sub-section (1), and after taking into account any relevant material which he has gathered
under sub-section (2) and any other evidence produced by the assessee, shall by an order in writing,
assess the undisclosed foreign income and asset and determine the sum payable by the assessee.
(4) If any person fails to comply with all the terms of the notice under sub-section (1), the Assessing
Officer shall, after taking into account all the relevant material which he has gathered and after giving the
assessee an opportunity of being heard, make the assessment of undisclosed foreign income and asset to
the best of his judgment and determine the sum payable by the assessee.
11. Time limit for completion of assessment and reassessment.—(1) No order of assessment or
reassessment shall be made under section 10 after the expiry of two years from the end of the financial
year in which the notice under sub-section (1) of section 10 was issued by the Assessing Officer.
(2) Notwithstanding anything contained in sub-section (1), an order of fresh assessment in pursuance
of an order passed under section 18 setting aside or cancelling an assessment, may be made at any time
before the expiry of the period of two years from the end of the financial year in which the order under
section 18 is received by the Principal Commissioner or the Commissioner.
(3) The provisions of sub-section (1) shall not apply to the assessment or reassessment made in
consequence of, or to give effect to, any finding or direction contained in an order under section 15 or
section 18 or section 19 or section 22 of this Act or in an order of any court in a proceeding otherwise
than by way of appeal under this Act and such assessment or reassessment may, subject to the provisions
of sub-section (2), be completed at any time, before the expiry of the period of two years from the end of
the financial year in which such order is received by the Principal Commissioner or the Commissioner.
Explanation 1.—In computing the period of limitation for the purpose of this section—
(i) the time taken in reopening the whole or any part of the proceeding; or
(ii) the period during which the assessment proceeding is stayed by an order or injunction of any
court; or
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(iii) the period commencing from the date on which a reference or first of the references for
exchange of information is made by an authority competent under an agreement referred to in section
90 or section 90A of the Income-tax Act or under section 73 of this Act and ending with the date on
which the Principal Commissioner or the Commissioner last receives, the information so requested or
a period of one year, whichever is less,
shall be excluded:
Provided that where immediately after the exclusion of the aforesaid time or period, the period of
limitation referred to in sub-sections (1), (2) and (3) available to the Assessing Officer for making an
order of assessment or reassessment, as the case may be, is less than sixty days, such remaining period
shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended
accordingly.
Explanation 2.—Where, by an order referred to in sub-section (3), any undisclosed foreign income
and asset is excluded from the total undisclosed foreign income and asset for an assessment year in
respect of an assessee, then, an assessment of such undisclosed foreign income and asset for another
assessment year shall, for the purposes of section 10 and this section, be deemed to be one made in
consequence of, or to give effect to, any finding or direction contained in the said order.
12. Rectification of mistake.—(1) A tax authority may amend any order passed by it under this Act
so as to rectify any mistake apparent from the record.
(2) No amendment under this section shall be made after a period of four years from the end of the
financial year in which the order sought to be amended was passed.
(3) The tax authority shall not make any amendment, which has the effect of enhancing the
undisclosed foreign income and asset or reducing a refund or otherwise increasing the liability of the
assessee, unless the authority concerned has given to the assessee an opportunity of being heard.
(4) The tax authority concerned may make an amendment under this section—
(a) on its own motion; or
(b) on an application made to it by the assessee or, as the case may be, by the Assessing Officer.
(5) Any application received by the tax authority for amendment of an order shall be decided within a
period of six months from the end of the month in which such application is received by it.
(6) In a case where the order has been made in an appeal or revision, the power of the tax authority to
amend the order shall be restricted to matters other than those decided in appeal or revision.
13. Notice of demand.—Any sum payable in consequence of any order made under this Act shall be
demanded by a tax authority by serving upon the assessee a notice of demand in such form and manner as
may be prescribed.
14. Direct assessment or recovery not barred.—Nothing in this Chapter shall prevent either the
direct assessment of the person on whose behalf or for whose benefit the undisclosed income from a
source located outside India is receivable or undisclosed asset located outside India is held, or the
recovery from such person of the tax or any other sum of money payable in respect of such income and
asset.
15. Appeals to the Commissioner (Appeals).—(1) Any person, – (a) objecting to the amount of tax
on undisclosed foreign income and asset for which he is assessed by the Assessing Officer; or (b) denying
his liability to be assessed under this Act; or (c) objecting to any penalty imposed by the Assessing
Officer; or (d) objecting to an order of rectification having the effect of enhancing the assessment or
10
reducing the refund; or (e) objecting to an order refusing to allow the claim made by the assessee for a
rectification under section 12, may appeal to the Commissioner (Appeals).
(2) Every appeal shall be filed in such form and verified in such manner and be accompanied by a fee
as may be prescribed.
(3) An appeal shall be presented within a period of thirty days from—
(a) the date of service of the notice of demand relating to the assessment or penalty, or
(b) the date on which the intimation of the order sought to be appealed against is served in any
other case.
(4) The Commissioner (Appeals) may admit an appeal after the expiration of the period referred to in
sub-section (3)—
(a) if he is satisfied that the appellant had sufficient cause for not presenting it within that period;
and
(b) the delay in preferring the appeal does not exceed a period of one year.
(5) The Commissioner (Appeals) shall hear and determine the appeal and, subject to the provisions of
this Act, pass such orders as he thinks fit and such orders may include an order enhancing the assessment
or penalty:
Provided that an order enhancing the assessment or penalty shall not be made unless the assessee has
been given a reasonable opportunity of being heard.
16. Procedure to be followed in appeal.—(1) The Commissioner (Appeals) shall fix a date and
place for the hearing of the appeal, and shall give notice of the same to the appellant and the Assessing
Officer against whose order the appeal is preferred.
(2) The following shall have the right to be heard at the hearing of the appeal, namely:—
(a) the appellant, either in person or by an authorised representative;
(b) the Assessing Officer, either in person or by a representative.
(3) The Commissioner (Appeals) may adjourn the hearing of the appeal whenever he considers it
necessary or expedient to do so.
(4) The Commissioner (Appeals) may, before disposing of any appeal, make such further inquiry as
he thinks fit.
(5) The Commissioner (Appeals) may, during the proceedings before him, direct the Assessing
Officer to make an inquiry and report to him on the points arising out of any question of law or fact.
(6) The Commissioner (Appeals) may, at the hearing of an appeal, allow the appellant to go into any
ground of appeal not specified in the grounds of appeal, if the Commissioner (Appeals) is satisfied that
the omission was not wilful or unreasonable.
(7) The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall
state the points for determination, the decision thereon and the reasons therefor.
(8) Every appeal preferred under section 15 shall be heard and disposed of by the Commissioner
(Appeals) as expeditiously as possible and endeavour shall be made to dispose of such appeal within a
period of one year from the end of the financial year in which the appeal is preferred.
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(9) On the disposal of the appeal, the Commissioner (Appeals) shall communicate the order passed by
him to the assessee and to the Principal Chief Commissioner or the Chief Commissioner or the Principal
Commissioner or the Commissioner.
17. Powers of Commissioner (Appeals).—(1) In disposing of an appeal, the Commissioner
(Appeals) shall have the following powers, namely:—
(a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the
assessment;
(b) in an appeal against an order imposing a penalty, he may confirm or cancel such order;
(c) in any other case, he may determine the issues arising in the appeal and pass such orders
thereon, as he thinks fit.
(2) The Commissioner (Appeals) may consider and decide any matter which was not considered by
the Assessing Officer.
(3) The Commissioner (Appeals) shall not enhance an assessment or a penalty unless the appellant
has been given an opportunity of being heard.
(4) In disposing of an appeal, the Commissioner (Appeals) may consider and decide any matter
arising out of the proceedings in which the order appealed against was passed, notwithstanding that such
matter was not raised before him by the appellant.
18. Appeals to Appellate Tribunal.—(1) Any assessee aggrieved by an order passed by the
Commissioner (Appeals) under section 15, or an order passed by the Principal Commissioner or the
Commissioner under any provision of this Act, may appeal to the Appellate Tribunal against such order.
(2) The Principal Commissioner or the Commissioner may, if he objects to any order passed by the
Commissioner (Appeals) under any provision of this Act, direct the Assessing Officer to appeal to the
Appellate Tribunal against the order.
(3) Every appeal under sub-section (1) or sub-section (2) shall be filed within a period of sixty days
from the date on which the order sought to be appealed against is communicated to the assessee or to the
Principal Commissioner or the Commissioner, as the case may be.
(4) The Assessing Officer or the assessee, as the case may be, on receipt of notice that an appeal
against the order of the Commissioner (Appeals) has been preferred under sub-section (1) or
sub-section (2) by the other party may, notwithstanding that he may not have appealed against such order
or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross-objections,
verified in the prescribed manner, against any part of the order of the Commissioner (Appeals), and such
memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the
time specified in sub-section (3).
(5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of crossobjections after the expiry of the period referred to in sub-section (3) or sub-section (4), if —
(a) it is satisfied that there was sufficient cause for not presenting it within that period; and
(b) the delay in filing the appeal does not exceed a period of one year.
(6) An appeal to the Appellate Tribunal shall be filed in such form, and verified in such manner, and
shall, except in the case of an appeal referred to in sub-section (2) or a memorandum of cross-objections
referred to in sub-section (4), be accompanied by a fee as may be prescribed.
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(7) Subject to the provisions of this Act, in hearing and making an order on any appeal under this
section, the Appellate Tribunal shall exercise the same powers and follow the procedure as it exercises
and follows in hearing and making an order on any appeal under the Income-tax Act.
19. Appeal to High Court.—(1) An appeal shall lie to the High Court from every order passed in
appeal by the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial
question of law.
(2) The Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or
the Commissioner or an assessee, may file an appeal to the High Court on being aggrieved by any order
passed by the Appellate Tribunal and such appeal shall be —
(a) filed within a period of one hundred and twenty days from the date on which the order
appealed against is received by the Principal Chief Commissioner or the Chief Commissioner or the
Principal Commissioner or the Commissioner or the assessee;
(b) in the form of a memorandum of appeal precisely stating therein the substantial question of
law involved.
(3) The High Court may admit an appeal after the expiry of the period of one hundred and twenty
days referred to in sub-section (2), if it is satisfied that there was sufficient cause for not filing the appeal
within that period.
(4) If the High Court is satisfied that a substantial question of law is involved in any case, it shall
formulate that question.
(5) The appeal shall be heard only on the question so formulated, and the respondents shall, at the
hearing of the appeal, be allowed to argue that the case does not involve such question.
(6) Notwithstanding anything in sub-sections (4) and (5), the High Court may exercise its power to
hear the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case
involves such question of law.
(7) The High Court shall decide the question of law so formulated and deliver such judgment thereon
containing the grounds on which such decision is founded and may award such cost as it deems fit.
(8) The High Court may determine any issue which —
(a) has not been determined by the Appellate Tribunal; or
(b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on the
question of law referred to in sub-section (1).
(9) The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High
Court shall, so far as may be, apply in the case of appeals under this section.
(10) When the High Court delivers a judgment in an appeal filed before it under sub-section (7),
effect shall be given to the order passed on the appeal by the Assessing Officer on the basis of a certified
copy of the judgment.
20. Case before High Court to be heard by not less than two Judges.—(1) An appeal filed before
the High Court shall be heard by a Bench of not less than two Judges of the High Court and shall be
decided in accordance with the opinion of such Judges or if the Bench is of more than two Judges, by the
majority of such Judges.
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(2) Where there is no such majority, the Judges shall state the point of law upon which they differ and
the case shall then be heard upon that point only by one or more of the other Judges of the High Court and
such point shall be decided according to the opinion of the majority of the Judges who have heard the
case including those who first heard it.
21. Appeal to Supreme Court.—An appeal shall lie to the Supreme Court from any judgment of the
High Court delivered under section 19 which the High Court certifies to be a fit case for appeal to the
Supreme Court.
22. Hearing before Supreme Court.—(1) The provisions of the Code of Civil Procedure, 1908
(5 of 1908), relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals
under section 21 as they apply in the case of appeals from decrees of a High Court.
(2) The costs of the appeal shall be in the discretion of the Supreme Court.
(3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to
the order of the Supreme Court in the manner provided in sub-section (10) of section 19.
23. Revision of orders prejudicial to revenue.—(1) The Principal Commissioner or the
Commissioner may, for the purposes of revising any order passed in any proceeding under this Act before
any tax authority subordinate to him, call for and examine all available records relating thereto.
(2) The Principal Commissioner or the Commissioner may, after giving the assessee an opportunity of
being heard, pass an order (hereinafter referred to as the revision order) as the circumstances of the case
justify, if he is satisfied that the order sought to be revised is erroneous in so far as it is prejudicial to the
interests of the revenue.
(3) The Principal Commissioner or the Commissioner may make, or cause to be made, such inquiry
as he considers necessary for the purposes of passing an order under sub-section (2).
(4) The revision order passed by the Principal Commissioner or the Commissioner under
sub-section (2) may have the effect of enhancing or modifying the assessment but shall not be an order
cancelling the assessment and directing a fresh assessment.
(5) The power of the Principal Commissioner or the Commissioner under sub-section (2) for revising
an order shall extend to such matters as have not been considered and decided in any appeal.
(6) No order under sub-section (2) shall be made after the expiry of a period of two years from the
end of the financial year in which the order sought to be revised was passed.
(7) Notwithstanding anything in sub-section (6), an order in revision under this section may be passed
at any time in respect of an order which has been passed in consequence of, or to give effect to, any
finding or direction contained in an order of the Appellate Tribunal, the High Court or the Supreme Court.
(8) In computing the period of limitation under sub-section (6), the following shall not be included,
namely:—
(a) the time taken in giving an opportunity to the assessee to be reheard under section 7; or
(b) any period during which any proceeding under this section is stayed by an order or injunction
of any court.
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(9) Without prejudice to the generality of the foregoing provisions, an order passed by a tax authority
shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if in the
opinion of the Principal Commissioner or the Commissioner—
(a) the order is passed without making inquiries or verification which, should have been made; or
(b) the order has not been made in accordance with any order, direction or instruction issued by
the Board; or
(c) the order has not been passed in accordance with any decision, prejudicial to the assessee,
rendered by the jurisdictional High Court or the Supreme Court in the case of the assessee or any
other person under this Act or the Income-tax Act.
(10) In this section, ―record‖ shall include all records relating to any proceeding under this Act
available at the time of examination by the Principal Commissioner or the Commissioner.
24. Revision of other orders.—(1) The Principal Commissioner or the Commissioner may, either
suo motu or on an application made by the assessee, for the purposes of revising any order passed by an
authority subordinate to him, other than an order to which section 23 applies, call for and examine all
available records relating thereto.
(2) The Principal Commissioner or the Commissioner may pass an order, as he considers necessary,
which is not prejudicial to the assessee.
(3) The power of the Principal Commissioner or the Commissioner under sub-section (2) to revise an
order shall not extend to such order—
(a) against which an appeal has not been filed but the time for filing an appeal before the
Commissioner (Appeals) has not expired;
(b) against which an appeal is pending before the Commissioner (Appeals); or
(c) which has been considered and decided in any appeal.
(4) The assessee shall make the application for revision of any order referred to in sub-section (1),
within a period of one year from the date on which the order sought to be revised was communicated to
him, or the date on which he otherwise came to know of it, whichever is earlier.
(5) The Principal Commissioner or the Commissioner may, if he is satisfied that the assessee was
prevented by sufficient cause from making the application within the period of one year, admit an
application made after the expiry of one year but before expiry of two years from the date referred to in
sub-section (4).
(6) Every application by an assessee for revision under this section shall be accompanied by such fees
as may be prescribed.
(7) No order under sub-section (2) shall be made after the expiry of—
(a) a period of one year from the end of the financial year in which an application is made by the
assessee under sub-section (4); or
(b) a period of one year from the date of the order sought to be revised, if the order is revised
suo motu by the Commissioner.
(8) In computing the period of limitation under sub-section (7), the following shall not be included,
namely:—
(a) the time taken in giving an opportunity to the assessee to be reheard under section 7; or
15
(b) any period during which any proceeding under this section is stayed by an order or injunction
of any court.
(9) An order by the Principal Commissioner or the Commissioner declining to interfere shall, for the
purposes of this section, be deemed not to be an order prejudicial to the assessee.
25. Tax to be paid pending appeal.—Notwithstanding any appeal preferred to the High Court or the
Supreme Court, the tax shall be paid in accordance with the assessment made under this Act.
26. Execution of order for costs awarded by Supreme Court.—The High Court may, on petition
made for the execution of the order in respect of the costs awarded by the Supreme Court, transmit such
order for execution to any court subordinate to it.
27. Amendment of assessment on appeal.—Where as a result of an appeal under section 15 or
section 18, any change is made in the assessment of a body of individuals or an association of persons or
an order for new assessment of a body of individuals or an association of persons is made, the
Commissioner (Appeals) or the Appellate Tribunal, as the case may be, shall pass an order authorising the
Assessing Officer either to amend the assessment made or make a fresh assessment on any member of the
body or association.
28. Exclusion of time taken for obtaining copy.—In computing the period of limitation prescribed
for an appeal under this Act, the day on which the notice of the order was served upon the assessee
without serving a copy of the order, the time taken for obtaining a copy of such order, shall be excluded.
29. Filing of appeal by tax authority.—(1) The Board may, from time to time, issue orders,
instructions or directions to other tax authorities, fixing such monetary limits as it may deem fit, for the
purpose of regulating the filing of appeal by any tax authority under this Chapter.
(2) Where, in pursuance of the orders, instructions or directions issued under sub-section (1), a tax
authority has not filed any appeal on any issue in the case of an assessee for any financial year, it shall not
preclude such authority from filing an appeal on the same issue in the case of—
(a) the same assessee for any other financial year; or
(b) any other assessee for the same or any other financial year.
(3) Notwithstanding that no appeal has been filed by a tax authority pursuant to the orders or
instructions or directions issued under sub-section (1), it shall not be lawful for an assessee, being a party
in any appeal, to contend that the tax authority has acquiesced in the decision on the disputed issue by not
filing an appeal in any case.
(4) The Appellate Tribunal, hearing such appeal, shall have regard to the orders, instructions or
directions issued under sub-section (1) and the circumstances under which such appeal was filed or not
filed in respect of any case.
(5) Every order, instruction or direction which has been issued by the Board fixing monetary limits
for filing an appeal shall be deemed to have been issued under sub-section (1) and the provisions of
sub-sections (2), (3) and (4) shall apply accordingly.
30. Recovery of tax dues by Assessing Officer.—(1) Any amount specified as payable in a notice of
demand under section 13 shall be paid within a period of thirty days of the service of the notice, to the
credit of the Central Government in such manner as may be prescribed.
(2) Where the Assessing Officer has any reason to believe that it will be detrimental to the interests of
revenue, if the period of thirty days referred to in sub-section (1) is allowed, he may, with the previous
approval of the Joint Commissioner, reduce such period as he deems fit.
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(3) The Assessing Officer may, on an application made by the assessee, before the expiry of a period
of thirty days or the period reduced under sub-section (2) or during the pendency of appeal with the
Commissioner (Appeals), extend the time for payment, or allow payment by instalments, subject to such
conditions as he may think fit to impose in the circumstances of the case.
(4) An assessee shall be deemed to be an assessee in default, if the tax arrear is not paid within the
time allowed under sub-section (1) or the period reduced under sub-section (2) or extended under
sub-section (3), as the case may be.
(5) Where an assessee defaults in paying any one of the instalments within the time fixed under
sub-section (3), he shall be deemed to be an assessee in default in respect of the whole of the then
outstanding amount.
(6) The Assessing Officer may, in a case where no certificate has been drawn up under section 31 by
the Tax Recovery Officer, recover the amount in respect of which the assessee is in default, or is deemed
to be in default, by any one or more of the modes provided in section 32.
(7) The Tax Recovery Officer shall be vested with the powers to recover the tax arrear on drawing up
of a statement of tax arrear under section 31.
31. Recovery of tax dues by Tax Recovery Officer.—(1) The Tax Recovery Officer may draw up
under his signature a statement of tax arrears of an assessee referred to in sub-section (4) or
sub-section (5) of section 30, in such form, as may be prescribed (such statement hereafter in this Chapter
referred to as ―certificate‖).
(2) The certificate under sub-section (1) shall stand amended from time to time consequent to any
proceeding under this Act and the Tax Recovery Officer shall recover the amount so modified.
(3) The Tax Recovery Officer may rectify any mistake apparent from the record.
(4) The Tax Recovery Officer shall have the power to extend the time for payment, or allow payment
by instalments, subject to such conditions as he may think fit to impose in the circumstances of the case.
(5) The Tax Recovery Officer shall proceed to recover from the assessee the amount specified in the
certificate by one or more of the modes referred to in section 32 or in the Second Schedule to the
Income-tax Act.
(6) It shall not be open to the assessee to dispute the correctness of any certificate drawn up by the
Tax Recovery Officer on any ground whatsoever, but it shall be lawful for the Tax Recovery Officer to
cancel the certificate if, for any reason, he thinks it necessary so to do.
32. Modes of recovery of tax dues.—(1) The Assessing Officer or the Tax Recovery Officer may
require the employer of the assessee to deduct from any payment to the assessee such amount as is
sufficient to meet the tax arrear from the assessee.
(2) Upon requisition under sub-section (1), the employer shall comply with the requisition and shall
pay the sum so deducted to the credit of the Central Government in such manner as may be prescribed.
(3) Any part of the salary, exempt from attachment in execution of a decree of a civil court under
section 60 of the Code of Civil Procedure, 1908 (5 of 1908), shall be exempt from any requisition made
under sub-section (1).
(4) The Assessing Officer or the Tax Recovery Officer may, by notice in writing, require any debtor
of the assessee to pay such amount, not exceeding the amount of debt, as is sufficient to meet the tax
arrear of the assessee.
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(5) Upon receipt of the notice under sub-section (4), the debtor shall comply with the requisition and
shall pay the sum to the credit of the Central Government in such manner as may be prescribed within the
time (not being before the debt becomes due to the assessee) specified in the notice.
(6) A copy of the notice issued under sub-section (4) shall be forwarded to the assessee at his last
address known to the Assessing Officer or the Tax Recovery Officer and in the case of a joint account, to
all the joint holders at their last addresses known to the Assessing Officer or the Tax Recovery Officer.
(7) It shall not be necessary for any pass book, deposit receipt, policy or any other document to be
produced for the purpose of any entry, endorsement or the like being made before payment is made,
notwithstanding any rule, practice or requirement to the contrary if the notice under sub-section (4) is
issued to a post office, banking company, insurer or any other person.
(8) Any claim in respect of any property, in relation to which a notice under sub-section (4) has been
issued, arising after the date of the notice, shall be void as against any demand contained in the notice.
(9) A person to whom a notice under sub-section (4) has been issued, shall not be required to pay the
amount of tax arrear specified therein, or part thereof, if he objects to it by a statement on oath that the
sum demanded, or any part thereof, is not due to the assesse or that he does not hold any money for, or on
account of, the assessee.
(10) The person referred to in sub-section (9) shall be personally liable to the Assessing Officer or the
Tax Recovery Officer, as the case may be, to the extent of his own liability to the assessee on the date of
the notice, or to the extent of the liability of the assessee for any sum due under this Act, whichever is
less, if it is discovered that the statement made by him was false in any respect.
(11) The Assessing Officer or the Tax Recovery Officer may amend or revoke any notice issued
under sub-section (4) or extend the time for making any payment in pursuance of such notice.
(12) The Assessing Officer or the Tax Recovery Officer shall grant a receipt for any amount paid in
compliance with a notice issued under sub-section (4), and the person so paying shall be fully discharged
from his liability to the assessee to the extent of the amount so paid.
(13) Any person discharging any liability to the assessee after receipt of a notice under sub-section (4)
shall be personally liable to the Assessing Officer or the Tax Recovery Officer to the extent of his own
liability to the assessee so discharged or to the extent of the liability of the assessee for any sum due under
this Act, whichever is less.
(14) The debtor to whom a notice under sub-section (4) is sent shall be deemed to be an assessee in
default, if he fails to make such payment and further proceedings may be initiated against him for the
realisation of the amount in the manner provided in this section and the Second Schedule to the
Income-tax Act.
(15) The Assessing Officer or the Tax Recovery Officer may apply to the court, in whose custody
there is money belonging to the assessee, for payment to him of the entire amount of such money or if it
is more than the tax arrear, an amount sufficient to meet the tax arrear.
(16) The Assessing Officer or the Tax Recovery Officer shall effect the recovery of any tax arrear in
the same manner as attachment, distraint and sale of any movable property under the Second Schedule to
the Income-tax Act, if he is so authorised by the Principal Chief Commissioner or the Chief
Commissioner, or the Principal Commissioner or the Commissioner, by general or special order.
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(17) In this section,—
(a) ‗‗debtor‘‘, in relation to an assessee, means,—
(i) any person from whom any money is due, or may become due, to the assessee; or
(ii) any person who holds, or may subsequently hold, any money for, or on account of, the
assessee; or
(iii) any person who holds, or may subsequently hold, any money for, or on account of, the
assessee jointly with any other person;
(b) shares of the joint holders in the account shall be presumed, until the contrary is proved, to be
equal.
33. Tax Recovery Officer by whom recovery of tax dues is to be effected.—(1) The Tax Recovery
Officer competent to take action under section 31 shall be the Tax Recovery Officer —
(a) within whose jurisdiction —
(i) the assessee carries on his business;
(ii) the principal place of business of the assessee is situate;
(iii) the assessee resides; or
(iv) any movable or immovable property of the assessee is situate; or
(b) who has been assigned jurisdiction under section 6.
(2) The Tax Recovery Officer, referred to in sub-section (1), may send a certificate, in such manner as
may be prescribed, specifying the tax arrear to be recovered, to another Tax Recovery Officer within
whose jurisdiction the assessee resides or has property, if the first-mentioned Tax Recovery Officer —
(a) is not able to recover the entire amount by sale of the property, movable or immovable, within
his jurisdiction; or
(b) is of the opinion that, for the purpose of expediting, or securing, the recovery of the whole, or
any part, of the amount under this Chapter, it is necessary to send such certificate.
(3) The second-mentioned Tax Recovery Officer shall, on receipt of the certificate, assume
jurisdiction for recovery of the amount of tax arrear specified therein and proceed to recover the amount
in accordance with the provisions of this Chapter.
34. Recovery of tax dues in case of a company in liquidation.—(1) The liquidator shall inform the
Assessing Officer, who has jurisdiction to assess the undisclosed foreign income and asset of the
company, of his appointment within a period of thirty days of his becoming the liquidator.
(2) The Assessing Officer shall, within a period of three months from the date on which he receives
the information, intimate to the liquidator the amount which, in his opinion, would be sufficient to
provide for any tax arrears or any amount which is likely to become payable thereafter, by the company
under this Act.
(3) The liquidator—
(a) shall not part with any of the assets of the company, or the properties, in his custody until he
has been intimated by the Assessing Officer under sub-section (2); and
(b) on being so intimated, shall set aside an amount equal to the amount intimated.
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(4) Upon receipt of the intimation from the Assessing Officer under sub-section (2), the amount so
intimated shall, notwithstanding anything in any other law for the time being in force, be the first charge
on the assets of the company remaining after payment of the following dues, namely:—
(a) workmen‘s dues; and
(b) debts due to secured creditors to the extent such debts under clause (iii) of the proviso to
sub-section (1) of section 325 of the Companies Act, 2013 (18 of 2013) are pari passu with such
dues.
(5) The liquidator shall be personally liable for the payment of the amount payable by the company, if
he—
(a) fails to inform in accordance with sub-section (1); or
(b) fails to set aside the amount as required by sub-section (3).
(6) The obligations and liabilities attached to the liquidator under this section shall attach to all the
liquidators jointly and severally in a case where there is more than one liquidator.
(7) The provisions of this section shall prevail over anything to the contrary contained in any other
law for the time being in force.
(8) In this section,—
(a) ―liquidator‖ in relation to a company which is being wound up, whether under the orders of a
court or otherwise, shall include a receiver of the assets of the company;
(b) ―workmen‘s dues‖ shall have the meaning assigned to it in section 325 of the Companies
Act, 2013 (18 of 2013).
35. Liability of manager of a company.—(1) Every person being a manager at any time during the
financial year shall be jointly and severally liable for the payment of any amount due under this Act in
respect of the company for the financial year, if the amount cannot be recovered from the company.
(2) The provisions of sub-section (1) shall not apply, if the manager proves that non-recovery cannot
be attributed to any neglect, misfeasance or breach of duty on his part in relation to the affairs of the
company.
(3) The provisions of this section shall prevail over anything to the contrary contained in the
Companies Act, 2013 (18 of 2013).
(4) In this section, ―manager‖ shall include a managing director and both shall have the meaning
respectively assigned to them in clause (53) and clause (54) of section 2 of the Companies Act, 2013
(18 of 2013).
36. Joint and several liability of participants.—(1) Every person, being a participant in an
unincorporated body at any time during the financial year, or the representative assessee of the deceased
participant, shall be jointly and severally liable, along with the unincorporated body, for payment of any
amount payable by the unincorporated body under this Act and all the provisions of this Act shall apply
accordingly.
(2) In case of a limited liability partnership, the provisions of sub-section (1) shall not apply, if the
partner proves that non-recovery cannot be attributed to any neglect, misfeasance or breach of duty on his
part in relation to the affairs of the partnership.
(3) The provisions of this section shall prevail over anything to the contrary contained in the Limited
Liability Partnership Act, 2008 (6 of 2009).
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37. Recovery through State Government.—If the recovery of tax in any area has been entrusted to
a State Government under clause (1) of article 258 of the Constitution, the State Government may direct,
with respect to that area or any part thereof, that tax shall be recovered therein with, and as an addition to,
any municipal tax or local rate, by the same person and in the manner as the municipal tax or local rate is
recovered.
38. Recovery of tax dues in pursuance of agreements with foreign countries or specified
territory.—(1) The Tax Recovery Officer may, in a case where an assessee has property in a country or a
specified territory outside India, forward a certificate to the Board for recovery of the tax arrears from the
assessee, where the Central Government or any specified association in India has entered into an
agreement with that country or territory under section 90 or section 90A of the Income-tax Act or under
sub-sections (1), (2) or sub-section (4) of section 73 of this Act, as the case may be, for the purposes of
recovery of tax.
(2) On receipt of the certificate under sub-section (3) from the Tax Recovery Officer, the Board may
take such action thereon as it may deem appropriate having regard to the terms of the agreement with
such country or a specified territory.
39. Recovery by suit or under other law not affected.—(1) The several modes of recovery
specified in this Chapter shall not affect in any way—
(a) any other law for the time being in force relating to the recovery of debts due to the
Government; or
(b) the right of the Government to institute a suit for the recovery of the tax arrears from the
assessee.
(2) It shall be lawful for the Assessing Officer, or the Government, to have recourse to any such law
or suit, notwithstanding that the tax arrears are being recovered from the assessee by any mode specified
in this Chapter.
40. Interest for default in furnishing return and payment or deferment of advance tax.—(1)
Where the assessee has any income from a source outside India which has not been disclosed in the return
of income furnished under sub-section (1) of section 139 of the Income-tax Act or the return of income
has not been furnished under the said sub-section, interest shall be chargeable in accordance with the
provisions of section 234A of the Income-tax Act.
(2) Where the assessee has any undisclosed income from a source outside India and the advance tax
on such income has not been paid in accordance with Part C of Chapter XVII of the Income-tax Act,
interest shall be chargeable in accordance with the provisions of sections 234B and 234C of the
Income-tax Act.