Recovery by suit or under other law not affected

Section 421 — RECOVERY BY SUIT OR UNDER OTHER LAW NOT AFFECTED

Section 421 of the Income-tax Act, 2025 corresponds to s. 232 of the Income-tax Act, 1961.

STATUTORY ARCHITECTURE

Section 421 is a saving provision. It declares that the several modes of recovery specified in this Part do not affect in any way two other routes available to the Government for recovering tax arrears: any other law for the time being in force relating to the recovery of debts due to Government, and the right of the Government to institute a suit for recovery of the arrears due from the assessee. It further makes it lawful for the Assessing Officer or the Government, as the case may be, to resort to such other law or suit, irrespective of the fact that the tax due is already being recovered from the assessee by a mode specified in this Part of the Chapter.

KEY ELEMENTS

• Clause (a) — the recovery modes in this Part do not affect any other law for the time being in force relating to the recovery of debts due to Government.
• Clause (b) — nor do they affect the right of the Government to institute a suit for the recovery of arrears due from the assessee.
• Enabling limb — the Assessing Officer or the Government, as the case may be, may lawfully have recourse to any such law or suit.
• Concurrency — that recourse is available irrespective of the fact that recovery by a mode specified in this Part is already under way.

CHANGES FROM THE 1961 ACT

Section 421 corresponds to s. 232 of the 1961 Act and is substantively the same. The visible differences are drafting changes: references to "this Chapter" become "this Part" and, in the closing words, "this Part of the Chapter"; and "notwithstanding that the tax due is being recovered" becomes "irrespective of the fact that the tax due is being recovered". Clauses (a) and (b) and the reference to the Assessing Officer or the Government are carried over unchanged in substance.

PRACTITIONER NOTES

• The recovery modes under this Part are not exclusive. An assessee facing recovery under this Part cannot object, on the words of the section, merely because the Government has also resorted to another law relating to recovery of debts due to Government or to a civil suit.
• Equally, the pendency of recovery under this Part is no bar to a suit; the section expressly permits recourse "irrespective of the fact" that recovery by a statutory mode is in progress.
• The section confers the choice on "the Assessing Officer or the Government, as the case may be"; it does not itself specify which of them is to invoke which remedy.
• The section speaks of recovery of "the arrears due from the assessee"; it preserves other remedies rather than laying down a procedure of its own.

CROSS-REFERENCES

• This Part — the several modes of recovery which the section declares to be without prejudice to other remedies.
• s. 232 of the 1961 Act — corresponding provision.