Section 222 of ITA, 1961 : Section 222: Certificate To Tax Recovery Officer

Explanation using Example

Imagine a scenario where Mr. Sharma, a business owner, has failed to pay his income tax despite multiple reminders from the Income Tax Department. His tax debt has accumulated to a significant amount. The Tax Recovery Officer (TRO) steps in to recover the due taxes as per Section 222 of The Income-tax Act, 1961.

The TRO issues a certificate stating the amount Mr. Sharma owes and decides to proceed with the recovery. To recover the tax arrears, the TRO considers the following options:

• Attaching and selling Mr. Sharma's luxury car, which is a movable property.
• Attaching and auctioning off a piece of land Mr. Sharma owns, which is an immovable property.
• If other methods fail and the situation warrants it, potentially arresting Mr. Sharma and detaining him in prison.
• Appointing a receiver to manage Mr. Sharma's properties, both movable and immovable, to ensure the tax arrears are recovered.

Furthermore, if Mr. Sharma had transferred some of his assets to his wife or minor child without adequate consideration after June 1, 1973, those assets could still be considered his for the purpose of recovering the tax debt.

Even if Mr. Sharma is facing other legal actions for the recovery of the same tax debt, the TRO is empowered by sub-section (2) to proceed with the actions outlined in Section 222 without waiting for the outcome of those other proceedings.