Section 81 - Amendment of Second Schedule - Taxation Laws (Amendment) Act, 1975

81. Amendment of Second Schedule. In the Second Schedule to the Income-tax Act, (i) rule 19A shall be re-numbered as sub-rule (2) thereof, and before that sub-rule as so re-numbered, the following sub-rule shall be inserted, namely: (1) A Tax Recovery Officer, being a Gazetted Officer of the Central Government who is authorised to exercise the powers of a Tax Recovery Officer under this Act, may entrust any of his functions as 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: Provided that where the Tax Recovery Officer is an Income- tax Officer any entrustment under this sub-rule shall be made only with the approval of the Inspecting Assistant Commissioner. ; (ii) in rule 53, in clause (c), the word and occurring at the end shall be omitted, and after that clause, the following clause shall be inserted, namely: ; (cc) the reserve price, if any, below which the property may not be sold; and ; (iii) to rule 56, the following proviso shall be added, namely: Provided that no sale under this rule shall be made if the amount bid by the highest bidder is less than the reserve price, if any, specified under clause (cc) of rule 53. ; (iv) rule 59 shall be re-numbered as sub-rule (2) thereof, and before that sub-rule as so re-numbered, the following sub-rule shall fee inserted, namely: (1) Where the sale of a property, for which a reserve price has been specified Under clause (cc) of rule 53, has been postponed for want of a bid of an amount not less than such reserve price, it shall be lawful for an Income-tax Officer, if so authorised by the Commissioner in this behalf, to Bid for the property on behalf of the Central Government at any subsequent sale. ; (v) in Part III, after rule 89, the following rule shall be inserted, namely: 68A. Acceptance of property in satisfaction of amount due from the defaulter. (1) Without prejudice to the provisions contained in this Part, an Income-tax Officer, duly authorised by the Commissioner in this behalf, may accept in satisfaction of the whole or any part of the amount due from the defaulter the property, the sale of which has been postponed for the reason mentioned in sub-rule (1) of rule 59, at such price as may be, agreed upon between the Income-tax Officer and the defaulter. (2) Where any property is accepted under sub-rule (1), the defaulter shall deliver possession of such property to the Income-tax Officer and on the date the possession of the property is delivered to the Income-tax Officer, the property shall vest in the Central Government and the Central Government shall, where necessary, intimate the concerned Registering Officer appointed under the Registration Act, 1908 (16 of 1908), accordingly. (3) Where the price of the property agreed upon under sub-rule (1) exceeds the amount due from the defaulter, such excess shall be paid by the Income-tax Officer to the defaulter within a period of three months from the date of delivery of possession of the property and where the Income-tax Officer fails to pay such excess within the period aforesaid, the Central Government shall, for the period commencing on the expiry of such period and ending with the date of payment of the amount remaining unpaid, pay simple interest at twelve per cent, per annum to the defaulter on such amount. ; (vi) in rule 73,- (i) after sub-rule (3), the following sub-rule shall be inserted, namely. (3A) A warrant of arrest issued by a Tax Recovery Officer under sub-rule (2) or sub-rule (3) may also be executed by any other Tax Recovery Officer within whose jurisdiction the defaulter may for the time being be found. ; (ii) in sub-rule (4), (a) for the words, brackets and figures sub-rule (2) or sub-rule (3) , the words this rule shall be substituted, and after the words Tax Recovery Officer , the words issuing the warrant shall be inserted; (b) after the proviso, the following Explanation shall be inserted, namely: Explanation. For the purposes of this rule, where the defaulter is a Hindu undivided family, the Karta thereof shall be deemed to be the defaulter. .