India - Income Tax Act 2010 - Saarc

1.803 CH. XVII - COLLECTION AND RECOVERY S. 2223[Provided further that where the assessee proves to the satisfaction of the4[Assessing] Officer that the default was for good and sufficient reasons 5 , nopenalty shall be levied under this section.]6[Explanation.—For the removal of doubt, it is hereby declared that an assesseeshall not cease to be liable to any penalty under this sub-section merely by reasonof the fact that before the levy of such penalty he has paid the tax.](2) Where as a result of any final order the amount of tax, with respect tothe default in the payment of which the penalty was levied, has been whollyreduced, the penalty levied shall be cancelled and the amount of penalty paidshall be refunded.Certificate to Tax Recovery Officer 7 .222. 8 [(1) When an assessee is in default or is deemed to be in default inmaking a payment of tax, the Tax Recovery Officer may draw up under hissignature a statement in the prescribed form 9 specifying the amount of arrearsdue from the assessee (such statement being hereafter in this Chapter and in theSecond Schedule referred to as “certificate”) and shall proceed to recover fromsuch assessee the amount specified in the certificate by one or more of the modesmentioned below, in accordance with the rules laid down in the SecondSchedule—](a) attachment and sale of the assessee’s movable property ;(b) attachment and sale of the assessee’s immovable property ;(c) arrest of the assessee and his detention in prison ;(d) appointing a receiver for the management of the assessee’s movableand immovable properties.10[Explanation.—For the purposes of this sub-section, the assessee’s movable orimmovable property shall include any property which has been transferred,directly or indirectly on or after the 1st day of June, 1973, by the assessee to hisspouse or minor child or son’s wife or son’s minor child, otherwise than foradequate consideration, and which is held by, or stands in the name of, any of the3. Substituted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986,w.e.f. 10-9-1986.4. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.5. For the meaning of the term “good and sufficient reasons”, see Taxmann’s Direct TaxesManual, Vol. 3.6. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.7. See rule 117C.8. Substituted for the following portion in sub-section (1) [as amended by the Direct TaxLaws (Amendment) Act, 1989, w.r.e.f. 1-4-1988] by the Direct Tax Laws (Amendment) Act,1987, w.e.f. 1-4-1989 :“When an assessee is in default or is deemed to be in default in making a payment of tax,the Assessing Officer may forward to the Tax Recovery Officer a certificate under hissignature specifying the amount of arrears due from the assessee, and the Tax RecoveryOfficer on receipt of such certificate, shall proceed to recover from such assessee theamount specified therein by one or more of the modes mentioned below, in accordancewith the rules laid down in the Second Schedule—”9. See rule 117B and Form No. 57 for form of statement drawn by TRO.10. Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-10-1975.