Tax Recovery Officer by whom recovery is to be effected

Section 414 — TAX RECOVERY OFFICER BY WHOM RECOVERY IS TO BE EFFECTED

Section 414 of the Income-tax Act, 2025 corresponds to s. 223 of the Income-tax Act, 1961.

STATUTORY ARCHITECTURE

Section 414 identifies the Tax Recovery Officer who is to recover arrears through a certificate under s. 413. Jurisdiction rests either on where the assessee carries on business or profession, or on where the assessee resides or has property, as assigned by orders or directions of the Board or an authorised income-tax authority. Where the assessee has property within the jurisdiction of more than one Tax Recovery Officer, the certifying officer may send the certificate, or a certified copy, to another Tax Recovery Officer, who then also proceeds to recover the amount.

KEY ELEMENTS

• Sub-section (1)(a): the Tax Recovery Officer within whose jurisdiction the assessee carries on his business or profession, or has its principal place.
• Sub-section (1)(b): the Tax Recovery Officer within whose jurisdiction the assessee resides or any of his movable or immovable property is situated.
• Source of jurisdiction: orders or directions issued by the Board, or by any income-tax authority not below the rank of Commissioner authorised by the Board in pursuance of s. 241.
• Sub-section (2) conditions: property within more than one Tax Recovery Officer's jurisdiction, and the certifying officer either (a) cannot recover the entire amount by sale of property within his jurisdiction, or (b) considers it necessary to expedite or secure recovery of the whole or part of the amount.
• What is sent: (i) the certificate; or (ii) where only part of the amount is to be recovered, a copy certified in the prescribed manner specifying the amount to be recovered.
• Effect: the receiving officer, one referred to in sub-section (1)(b), also proceeds to recover as if he had drawn up the certificate or copy.

CHANGES FROM THE 1961 ACT

The section corresponds to s. 223 of the 1961 Act and is substantively the same. Visible differences: action under s. 222 of the 1961 Act becomes "the purposes of section 413"; s. 241 replaces s. 120 of the 1961 Act; the listed authorising officers (Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner) become "any income-tax authority not below the rank of Commissioner"; "this Chapter" becomes "this Part"; the certificate and certified copy are split into items (i) and (ii); and the receiving officer is one "referred to in sub-section (1)(b)" rather than one within whose jurisdiction the assessee resides or has property.

PRACTITIONER NOTES

• Jurisdiction turns on the orders or directions assigning it, so the relevant jurisdictional order should be identified when questioning which officer may act.
• Sub-section (2) is available only where the assessee has property within more than one Tax Recovery Officer's jurisdiction.
• The receiving officer "shall also proceed", so recovery can run before more than one officer on the same certificate.

CROSS-REFERENCES

• s. 413 — the certificate procedure for which the officer is identified.
• s. 241 — the provision in pursuance of which the Board authorises the income-tax authority that assigns jurisdiction.
• s. 414(1)(b) — identifies the officer to whom a certificate may be sent.
• s. 223 of the 1961 Act — corresponding provision.