Law: Income Tax Act, 1961

Section: 220,Sched.II,R.66

Income-tax---Recovery of tax---Attachment and property---Sale by public auction not fetching reserve price---Permission to defaulter to arrange private sale of property---Provisions of R. 66 of Sched. II are similar to R. 83 of 0. 21 of I has power to authorise sale within a period less than thirty days---Sale by private negotiation authorised by TRO---Sale transaction is complete when agreed price is deposited by purchaser---Person offering more than agreed price after completion of sale transaction has been concluded, has no locus standi to object to sale---Indian Income Tax Act, 1961, S.220 & Sched. II, R.66. Rule 66 of Schedule II to the Income Tax Act, 1961, permits change of scene from a public auction to a private negotiation by specific authorisation by the Income-tax Department. Rule 66 of Schedule II to the Act contains provisions analogous to rule 83 of Order 21 of the Civil Procedure Code. Rule 83 stipulates the principles that should a public auction be lacking in getting a reserve price or an anticipated price, a Court if not satisfied with the price fetched may permit a -debtor facing a decree, to authorise him to arrange a better price by negotiating a sale. When the Tax Recovery Officer grants a certificate to the defaulter authorising him to negotiate a sale within a period to be mentioned therein the qualifying words "notwithstanding anything contained in the Schedule" is not without meaning. If the words "notwithstanding anything contained in the Schedule" were not there, then the interplay of the other qualification of the sale being concluded not earlier than 30 days would come into play. Rule 66 is an independent provision. The legislative intent is also very clear that if the Tax recovery Officer is to authorise a period within which the negotiations are to be concluded, then it is that period during which the defaulter must conclude the sale. Rule 66, thus, is not qualified by other previsions of Schedule II relating to public auction. The Tax Recovery Officer concludes the sale when the money is deposited by the person who agrees to the sale. A property in K was attached by the income-tax authorities. It was attempted to be sold,…

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