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TMI Blog1992 (8) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... t ? For answering the aforesaid question, it is necessary that the relevant facts be stated which are these : The Income-tax Officer, Jaipur, had forwarded a certificate for recovery of arrears of wealth-tax from Messrs. P. H. Ray and Hans Raj (Hindu undivided family). Shri P. H. Ray also owned flats Nos. 7, 8 and 9 in Dee Vila Station Road, Jaipur. The said property was attached by the Tax Recovery Officer under the Second Schedule to the Income-tax Act, 1961 (for short, "the Act"). Under Part III of the Second Schedule to the Act and more so its paragraph 48, the property of the defaulter has to be attached as provided therein and the attachment to relate back from the date of service of notice. Then there are provisions for sale and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n such case, the Tax Recovery Officer shall grant a certificate to the defaulter, authorising him, within a period to be mentioned therein, and notwithstanding anything contained in this Schedule, to make the proposed mortgage, lease or sale : Provided that all moneys payable under such mortgage, lease or sale shall be paid, not to the defaulter, but to the Tax Recovery Officer: Provided also that no mortgage, lease or sale under this rule shall become absolute until it has been confirmed by the Tax Recovery Officer. " There appears to be no dispute that, after the property in dispute was attached, the defaulter had filed an application before the Tax Recovery Officer to postpone the sale so as to enable him to raise the amount by pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u undivided family. Given under my hand and seal at Jaipur this 28th day of March, 1981. (Sd.) Tax Recovery Officer (Income-tax), Jaipur." The case of the petitioner is that though the aforesaid certificate was issued to Messrs. Pee Vee Company by the Tax Recovery Officer, a copy of it was not sent to the Sub-Registrar and when the purchaser, Messrs. Pee Vee Company, went to the Sub-Registrar and requested him to file copy of sale in his Book No. 1, he declined to do so. After the writ petition was filed in this court, a show-cause notice was also given by the Tax Recovery Officer to the petitioner as to why the sale certificate, annexure 1, extracted above should not be cancelled and the ground on which the said notice has been given i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the Tax Recovery Officer and not to the defaulter. Not only this, the sale could have become absolute after confirmation of sale by the Tax Recovery Officer and the confirmation of sale by private negotiation was made by the Tax Recovery Officer. Therefore, there can be no dispute that the Second Schedule to the Act does not only speak of sale by public auction but also sale by private negotiation to enable the defaulter to raise the amount which amount has to go to the Tax Recovery Officer and not to the defaulter and, even if the sale is made by private negotiation after the certificate is granted as aforesaid by the Tax Recovery Officer, it has to be confirmed by the Tax Recovery Officer. Thus, as said earlier, the sale whether by p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, generally the mode under which the property attached can be sold is by public auction, but only on the certificate being granted by the Tax Recovery Officer. Sale by private negotiation is also permissible, but the confirmation is required by the Tax Recovery Officer, and, therefore, it will be presumed and shall be deemed that the sale is by public auction. Therefore, the sale being under paragraph 66 of the Second Schedule to the Act, the Tax Recovery Officer was bound to send a copy of the sale certificate to the Registering Officer who was then bound to file a copy of the same in his Book No. 1, no doubt, after the purchaser pays the necessary stamp duty chargeable. It may also be mentioned here that, along with this property, som ..... X X X X Extracts X X X X X X X X Extracts X X X X
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