Income Tax Act, 2025
Section 3: Ins. by Act 18 of 1992, s. 87 (w.e.f. 11992).
3. Ins. by Act 18 of 1992, s. 87 (w.e.f. 11992).
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PART IV
APPOINTMENT OF RECEIVER
69. Appointment of receiver for business.—(1) Where the property of a defaulter consists of a
business, the Tax Recovery Officer may attach the business and appoint a person as receiver to manage
the business.
(2) Attachment of a business under this rule shall be made by an order prohibiting the defaulter from
transferring or charging the business in any way and prohibiting all persons from taking any benefit under
such transfer or charge, and intimating that the business has been attached under this rule. A copy of the
order of attachment shall be served on the defaulter, and another copy shall be affixed on a conspicuous
part of the premises in which the business is carried on and on the notice board of the office of the Tax
Recovery Officer.
70. Appointment of receiver for immovable property.—Where immovable property is attached, the
Tax Recovery Officer may, instead of directing a sale of the property, appoint a person as receiver to
manage such property.
71. Powers of receiver.—(1) Where any business or other property is attached and taken under
management under the foregoing rules, the receiver shall, subject to the control of the Tax Recovery
Officer, have such powers as may be necessary for the proper management of the property and the
realisation of the profits, or rents and profits, thereof.
(2) The profits, or rents and profits, of such business or other property, shall, after defraying the
expenses of management, be adjusted towards discharge of the arrears, and the balance, if any, shall be
paid to the defaulter.
72. Withdrawal of management.—The attachment and management under the foregoing rules may
be withdrawn at any time at the discretion of the Tax Recovery Officer, or if the arrears are discharged by
receipt of such profits and rents or are otherwise paid.
PART V
ARREST AND DETENTION OF THE DEFAULTER
73. Notice to show cause.—(1) No order for the arrest and detention in civil prison of a defaulter
shall be made unless the Tax Recovery Officer has issued and served a notice upon the defaulter calling
upon him to appear before him on the date specified in the notice and to show cause why he should not be
committed to the civil prison, and unless the Tax Recovery Officer, for reasons recorded in writing, is
satisfied—
(a) that the defaulter, with the object or effect of obstructing the execution of the certificate, has,
after 1[the drawing up of the certificate by the Tax Recovery Officer], dishonestly transferred,
concealed, or removed any part of his property, or
(b) that the defaulter has, or has had since 1[the drawing up of the certificate by the Tax Recovery
Officer], the means to pay the arrears or some substantial part thereof and refuses or neglects or has
refused or neglected to pay the same.
(2) Notwithstanding anything contained in sub-rule (1), a warrant for the arrest of the defaulter may
be issued by the Tax Recovery Officer if the Tax Recovery Officer is satisfied, by affidavit or otherwise,
that with the object or effect of delaying the execution of the certificate, the defaulter is likely to abscond
or leave the local limits of the jurisdiction of the Tax Recovery Officer.
(3) Where appearance is not made in obedience to a notice issued and served under sub-rule (1), the
Tax Recovery Officer may issue a warrant for the arrest of the defaulter.
1. Subs. by Act 4 of 1988, s. 124, for, “the receipt of the certificate in the office of the Tax Recovery Office” (w.e.f. 1
1989).
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1[(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.]
(4) Every person arrested in pursuance of a warrant of arrest under 2[this rule] shall be brought before
the Tax Recovery Officer 3[issuing the warrant] as soon as practicable and in any event within twentyfour hours of his arrest (exclusive of the time required for the journey):
Provided that, if the defaulter pays the amount entered in the warrant of arrest as due and the costs of
the arrest to the officer arresting him, such officer shall at once release him.
1[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.]
74. Hearing.—When a defaulter appears before the Tax Recovery Officer in obedience to a notice to
show cause or is brought before the Tax Recovery Officer under rule 73, 4[the Tax Recovery Officer shall
proceed to hear the 5[Assessing Officer] and take all such evidence as may be produced by him in support
of execution by arrest, and then give the defaulter] an opportunity of showing cause why he should not be
committed to the civil prison.
75. Custody pending hearing.—Pending the conclusion of the inquiry, the Tax Recovery Officer
may, in his discretion, order the defaulter to be detained in the custody of such officer as the Tax
Recovery Officer may think fit or release him on his furnishing security to the satisfaction of the Tax
Recovery Officer for his appearance when required.
76. Order of detention.—(1) Upon the conclusion of the inquiry, the Tax Recovery Officer may
make an order for the detention of the defaulter in the civil prison and shall in that event cause him to be
arrested if he is not already under arrest:
Provided that in order to give the defaulter an opportunity of satisfying the arrears, the Tax Recovery
Officer may, before making the order of detention, leave the defaulter in the custody of the officer
arresting him or of any other officer for a specified period not exceeding 15 days, or release him on his
furnishing security to the satisfaction of the Tax Recovery Officer for his appearance at the expiration of
the specified period if the arrears are not so satisfied.
(2) When the Tax Recovery Officer does not make an order of detention under sub-rule (1) he shall, if
the defaulter is under arrest, direct his release.
77. Detention in and release from prison.—(1) Every person detained in the civil prison in
execution of a certificate may be so detained,—
(a) where the certificate is for a demand of an amount exceeding two hundred and fifty rupees—
for a period of six months, and
(b) in any other case—for a period of six weeks:
Provided that he shall be released from such detention—
(i) on the amount mentioned in the warrant for his detention being paid to the officer-in-charge of
the civil prison, or
6[(ii) on the request of the Tax Recovery Officer on any ground other than the grounds mentioned
in rules 78 and 79.]
Where the property of a defaulter consists of a
business, the Tax Recovery Officer may attach the business and appoint a person as receiver to manage
the business.
Attachment of a business under this rule shall be made by an order prohibiting the defaulter from
transferring or charging the business in any way and prohibiting all persons from taking any benefit under
such transfer or charge, and intimating that the business has been attached under this rule. A copy of the
order of attachment shall be served on the defaulter, and another copy shall be affixed on a conspicuous
part of the premises in which the business is carried on and on the notice board of the office of the Tax
Recovery Officer.
70. Appointment of receiver for immovable property.—Where immovable property is attached, the
Tax Recovery Officer may, instead of directing a sale of the property, appoint a person as receiver to
manage such property.
71. Powers of receiver.—
Where any business or other property is attached and taken under
management under the foregoing rules, the receiver shall, subject to the control of the Tax Recovery
Officer, have such powers as may be necessary for the proper management of the property and the
realisation of the profits, or rents and profits, thereof.
The profits, or rents and profits, of such business or other property, shall, after defraying the
expenses of management, be adjusted towards discharge of the arrears, and the balance, if any, shall be
paid to the defaulter.
72. Withdrawal of management.—The attachment and management under the foregoing rules may
be withdrawn at any time at the discretion of the Tax Recovery Officer, or if the arrears are discharged by
receipt of such profits and rents or are otherwise paid.
PART V
ARREST AND DETENTION OF THE DEFAULTER
73. Notice to show cause.—
No order for the arrest and detention in civil prison of a defaulter
shall be made unless the Tax Recovery Officer has issued and served a notice upon the defaulter calling
upon him to appear before him on the date specified in the notice and to show cause why he should not be
committed to the civil prison, and unless the Tax Recovery Officer, for reasons recorded in writing, is
satisfied—
that the defaulter, with the object or effect of obstructing the execution of the certificate, has,
after 1[the drawing up of the certificate by the Tax Recovery Officer], dishonestly transferred,
concealed, or removed any part of his property, or
that the defaulter has, or has had since 1[the drawing up of the certificate by the Tax Recovery
Officer], the means to pay the arrears or some substantial part thereof and refuses or neglects or has
refused or neglected to pay the same.
Notwithstanding anything contained in sub-rule
Where appearance is not made in obedience to a notice issued and served under sub-rule
A warrant of arrest issued by a Tax Recovery Officer under sub-rule
or sub-rule
may
also be executed by any other Tax Recovery Officer within whose jurisdiction the defaulter may for the
time being be found.]
Every person arrested in pursuance of a warrant of arrest under 2[this rule] shall be brought before
the Tax Recovery Officer 3[issuing the warrant] as soon as practicable and in any event within twentyfour hours of his arrest (exclusive of the time required for the journey):
Provided that, if the defaulter pays the amount entered in the warrant of arrest as due and the costs of
the arrest to the officer arresting him, such officer shall at once release him.
1[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.]
74. Hearing.—When a defaulter appears before the Tax Recovery Officer in obedience to a notice to
show cause or is brought before the Tax Recovery Officer under rule 73, 4[the Tax Recovery Officer shall
proceed to hear the 5[Assessing Officer] and take all such evidence as may be produced by him in support
of execution by arrest, and then give the defaulter] an opportunity of showing cause why he should not be
committed to the civil prison.
75. Custody pending hearing.—Pending the conclusion of the inquiry, the Tax Recovery Officer
may, in his discretion, order the defaulter to be detained in the custody of such officer as the Tax
Recovery Officer may think fit or release him on his furnishing security to the satisfaction of the Tax
Recovery Officer for his appearance when required.
76. Order of detention.—
Upon the conclusion of the inquiry, the Tax Recovery Officer may
make an order for the detention of the defaulter in the civil prison and shall in that event cause him to be
arrested if he is not already under arrest:
Provided that in order to give the defaulter an opportunity of satisfying the arrears, the Tax Recovery
Officer may, before making the order of detention, leave the defaulter in the custody of the officer
arresting him or of any other officer for a specified period not exceeding 15 days, or release him on his
furnishing security to the satisfaction of the Tax Recovery Officer for his appearance at the expiration of
the specified period if the arrears are not so satisfied.
When the Tax Recovery Officer does not make an order of detention under sub-rule
he shall, if
the defaulter is under arrest, direct his release.
77. Detention in and release from prison.—
Every person detained in the civil prison in
execution of a certificate may be so detained,—
where the certificate is for a demand of an amount exceeding two hundred and fifty rupees—
for a period of six months, and
in any other case—for a period of six weeks:
Provided that he shall be released from such detention—
on the amount mentioned in the warrant for his detention being paid to the officer-in-charge of
the civil prison, or
6[
on the request of the Tax Recovery Officer on any ground other than the grounds mentioned
in rules 78 and 79.]