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      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?
      A The rate of interest is replaced by the bank's lending rate Correct Answer Incorrect Answer
      B All references to 'tax arrear' are replaced with 'debt due to a bank' Correct Answer Incorrect Answer
      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' Correct Answer Incorrect Answer
      D The Income Tax Department's Recovery Officer exercises joint powers with the DRT Recovery Officer Correct Answer Incorrect Answer
      E The Second Schedule applies only to company defendants and the Third Schedule applies only to individual defendants Correct Answer Incorrect Answer

      Solution

      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.

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