Question

Section 29 of the Act applies provisions of the Income-tax Act, 1961 to DRT recovery proceedings. With what modification are those provisions applied?

Q: Answer-Section 29 of the Act applies provisions of the Income-tax Act, 1961 to DRT recovery proceedings. Wi...

Section 29 provides that the provisions of the Second and Third Schedules to the Income-tax Act, 1961, and the Income-tax Certificate Proceedings Rules, 1962, as in force from time to time, shall apply with necessary modifications as if references therein were to the amount of debt due under this Act instead of to income-tax. The proviso specifies that any reference to assessee in those provisions shall be construed as a reference to defendant under this Act. The Second Schedule deals with recovery by tax collectors and the Third Schedule covers distraint and sale procedures - both providing detailed machinery for forced asset realisation applicable to DRT recovery proceedings.

A The rate of interest is replaced by the bank's lending rate

B All references to 'tax arrear' are replaced with 'debt due to a bank'

C The provisions of the Second and Third Schedules to the Income-tax Act and the Income-tax (Certificate Proceedings) Rules, 1962 apply with necessary modifications, treating references to 'assessee' as references to 'defendant'

D The Income Tax Department's Recovery Officer exercises joint powers with the DRT Recovery Officer

E The Second Schedule applies only to company defendants and the Third Schedule applies only to individual defendants

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