TMI Blog1994 (3) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee in default and is personally liable to pay the outstanding demand of her husband ; so, her salary which is paid by the company is attached under section 226(2) of the Act subject to the proviso to that section. Being aggrieved by the aforesaid action of the respondent, the petitioner has filed this petition praying, inter alia, that the said notices dated October 23, 1993 (annexure "C"), be quashed and set aside as the same are illegal and without authority of law. It is the contention of the petitioner that she is an individual and is being assessed as such under the Income-tax Act, 1961 (hereinafter referred to as "the Act"). The husband of the petitioner, Rahul N. Amin, is also being assessed under the Act. It is the say of the respondent that, for the assessment year 1987-88, R. N. Amin is required to pay Rs. 2,38,951 towards outstanding income-tax liability. The respondent served a notice dated August 27, 1992, under section 226(3) of the Act to the petitioner asking her to make the payment towards the aforesaid dues of her husband. The petitioner, by her letter dated December 20, 1992, has admitted that her husband has advanced Rs. 2,18,887 to her and that the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied in that section, recover the tax by any one or more of the modes provided in this section. (2) If any assesses is in receipt of any income chargeable under the head 'Salaries', the Assessing Officer or the Tax Recovery Officer may require any person paying the same to deduct from any payment subsequent to the date of such requisition any arrears of tax due from such assessee, and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Central Government or as the Board directs : Provided that 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 this sub-section. (3) (i) The Assessing Officer or the Tax Recovery Officer may, at any time or from time to time, by notice in writing require any person from whom money is due or may become due to the assessee or any person who holds or may subsequently hold money for or on account of the assessee, to pay to the Assessing Officer or Tax Recovery Officer either forthwith upon the money becoming due or being held or at or within the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x, the Tax Recovery Officer may draw up under his signature a statement in the prescribed form specifying the amount of arrears due from the assessee. Such statement is to be considered a "certificate". After drawing up a certificate, the Tax Recovery Officer is entitled to proceed to recover from such assessee the amount specified in the certificate by one or more of the modes mentioned hereinbelow : (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 movable and immovable properties. Sub-section (2) of section 222 empowers the Tax Recovery Officer to take action under sub-section (1) of section 222 even though the proceedings for recovery of arrears by any other mode have been taken. In the context of sections 220 to 222, we are required to consider the provisions of section 226. Sub-section (1) of section 226 specifically empowers the Assessing Officer to recover tax by any one or more of the modes provided in the said section if no certificate has been drawn up under section 222. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manner provided in sections 222 to 225. This clause therefore specifically provides that, if the person to whom a notice under sub-section (3) is sent fails to make payment, he shall be deemed to be an assessee in default in respect of the amount specified in the notice. That amount specified in the notice is further deemed to be as if it were an arrear of tax due from him and the said amount could be recovered in the manner provided in sections 222 to 225. Hence, under this clause, the amount from a third party, who is liable to pay to the assessee and to whom the notice under sub-section (3) is given, can be recovered from him by following the procedure under sections 222 to 225, as if he is an assessee in default to the extent of the amount specified in the notice. Further, reading clause (x) of sub-section (3) of section 226, it is apparent that the Legislature has not provided that from the debtor of the assessee who is deemed to be an assessee in default as provided in clause (x), the arrears of tax can be recovered as provided under sub-section (2) of section 226. On the contrary, there is specific provision that it is to be recovered as provided in sections 222 to 22 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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