Section 124 - Amendment of the Second Schedule - Direct Tax Laws (Amendment) Act, 1987

124. Amendment of the Second Schedule. In the Second Schedule to the Income-tax Act,- (1) for the words and figures See section 222 occurring under the heading the words and figures See sections 222 and 276 shall be substituted; (2) in rule 1, for clause (a), the following clause shall be substituted, namely :- (a) certificate , except in rules 7, 44, 65 and sub-rule (2) of rule 66, means the certificate drawn up by the Tax Recovery Officer under section 222 in respect of any assessee referred to in that section; ; (3) in rule 2, for the words When a certificate has been received by the Tax Recovery Officer from the Income-tax Officer , the words When a certificate has been drawn up by the Tax Recovery Officer shall be substituted; (4) for rule 8, the following rule shall be substituted, namely :- 8. Disposal of proceeds of execution. (1) Whenever assets are realised by sale or otherwise in execution of a certificate, the proceeds shall be disposed of in the following manner, namely :- (a) they shall first be adjusted towards the amount due under the certificate in execution of which the assets were realised and the costs inured in the course of such execution; (b) if there remains a balance after the adjustment referred to in clause (a), the same shall be utilised for satisfaction of any other amount recoverable from the assessee under this Act which may be due on the date on which the assets were realised; and (c) the balance, if any, remaining after the adjustments under clauses (a) and (b) shall be paid to the defaulter. (2) If the defaulter disputes any adjustment under clause (b) of sub-rule (1), the Tax Recovery Officer shall determine the dispute. ; (5) in rule 9, - (i) for the words Income-tax Officer , the words Tax Recovery Officer shall be substituted; (ii) the words duly filled under this Act shall be omitted; (6) in rule 14, for the words Income-tax Officer , the words Tax Recovery Officer shall be substituted; (7) for rule 19A, the following rule shall be substituted, namely :- 19A. Entrustment of certain functions by Tax Recovery Officer. A Tax Recovery Officer may, with the previous approval of the Deputy Commissioner, entrust any of his functions as the Tax Recovery Officer to any other officer lower than him in rank. (not being lower in rank than an Inspector of Income-tax) and such officer shall, in relation to the functions so entrusted to him, be deemed to be a Tax Recovery Officer. ; (8) in rule 25, in sub-rule (1), for the words and the Income-tax Officer shall bear such sum as the Tax Recovery Officer shall require in order to defray the cost of such arrangements , the words and he shall have power to defray the cost of such arrangements shall be substituted; (9) in rule 27, for the words Income-tax Officer wherever they occur, the words Tax Recovery Officer shall be substituted; (10) in rule 31, for the words Income-tax Officer occurring in the proviso, the words Tay Recovery Officer shall be substituted; (11) in rule 47, for the words direct that such coins or notes, or a part thereof sufficient to satisfy the certificate, be paid over to the Income-tax Officer, the words and figure direct that such coins or notes shall be credited to the Central Government and the amount so credited shall be dealt with in the manner specified in rule 8 shall be substituted; (12) in rule 59, after sub-rule (2), the following sub-rule shall be inserted, namely :- (3) Where the Income-tax Officer referred to in sub-rule (1) is declared to be the purchaser of the property at any sub- sequent sale, nothing contained in rule 57 shall apply to the case and the amount of the purchase price shall be adjusted towards the amount specified in the certificate. ; (13) in rule 60, in sub-rule (1), in clause (a), the words for payment to the Income-tax Officer shall be omitted; (14) in rule 61, for the words Income-tax Officer , the words such Income-tax Officer as may be authorised by the Chief Commissioner or Commissioner in this behalf shall be substituted; (15) in rule 73, in sub-rule (1), in clauses (a) and (b), for the words the receipt of the certificate in the office of the Tax Recovery Officer , the words the drawing up of the certificate by the Tax Recovery Officer shall be substituted; (16) in rule 74, for the words the Tax Recovery Officer shall proceed to hear the Income-tax Officer and take all such evidence as may be produced by him in support of execution by arrest, and shall then give the defaulter , the words the Tax Recovery Officer shall give the defaulter shall be substituted; (17) in rule 77, in sub-rule (1),- (a) for clause (ii) of the proviso, the following clause shall be substituted, namely :- (ii) on the request of the Tax Recovery Officer on any ground other than the grounds mentioned in rules 78 and 79. ; (b) the second proviso shall be omitted; (18) in rules 82, 83 and 87, for the words Tax Recovery Commissioner , the words Chief Commissioner or Commissioner shall be substituted; (19) in rule 85, for the words If at any time after the issue of the certificate by the Income-tax Officer to the Tax Recovery Officer , the words If at any time after the certificate is drawn up by the Tax Recovery Officer shall be substituted; (20) in rule 86,- (a) for sub-rule (1), the following sub-rule shall be substituted, namely :- (1) An appeal from any original order parsed by the Tax Recovery Officer under this Schedule, not being an order which is conclusive, shall lie to the Chief Commissioner or Commissioner. ; (b) for sub-rule (4), the following sub-rule shall be substituted, namely :-- (4) Notwithstanding anything contained in sub-rule (1), where a Chief Commissioner or Commissioner is authorised to exercise powers as such in respect of any area, then, all appeals against the orders passed before the date of such authorisation by any Tax Recovery Officer authorised to exercise powers as such in respect of that area, or an area which is included in that area, shall lie to such Chief Commissioner or Commissioner. ; (21) rule 89 shall be omitted; (22) in rule 90, in sub-rule (1), for the words Income-tax Officer , the words Tax Recovery Officer shall be substituted; (23) in rule 92, for the words Tax Recovery Commissioners , in two places where they occur, the words Chief Commissioners, Commissioners shall be substituted; (24) after rule 93, the following rule shall be inserted, namely :- 94. Continuance of certain pending proceedings and power to remove difficulties. All proceedings for the recovery of tax pending immediately before the coming into force of the amendments to this Schedule by the Direct Tax Laws (Amendment) Act, 1987 shall be continued under this Schedule as amended by that Act from the stage they had reached, and, for this purpose, every certificate, issued by the Income-tax Officer under section 222 before such amendment shall be deemed to be a certificate drawn up by the Tax Recovery Officer under that section after such amendment, and, if any difficulty arises in continuing the said proceedings, the Board may issue (whether by way of modification, not affecting the substance, of any rule in this Schedule or otherwise) general or special orders which appear to it to be necessary or expedient for the purpose of removing the difficulty. .