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CMA Final · Direct Tax Laws and International Taxation · Collection, Recovery and Refund of Tax

A certificate for recovery of tax is drawn up by a Tax Recovery Officer under the Income-tax Act, 2025. The assessee's property lies in the jurisdiction of other Tax Recovery Officers as well. Which statement is correct?

The Tax Recovery Officer may send the certificate, or a certified copy stating the part amount, to another Tax Recovery Officer where the assessee resides or has property. This is allowed if full recovery is not possible locally or if sending it will expedite or secure recovery.

  1. AThe certificate can never be sent outside the jurisdiction of the TRO who drew it up
  2. BThe TRO may send the certificate, or a certified copy specifying the part amount to be recovered, to another TRO where the assessee resides or has property, if he cannot recover the whole amount within his jurisdiction or thinks it necessary to expedite or secure recoveryCorrect
  3. COnly the Board, and not the TRO, may send the certificate to another TRO
  4. DThe certificate can be sent to another TRO only if the assessee consents in writing

Explanation

Section 414(2) lets the TRO send the certificate, or a certified copy specifying the amount where only part is to be recovered, to the TRO of the place of residence or property. This is permitted when he cannot recover the whole amount within his jurisdiction or considers it necessary to expedite or secure recovery. No consent of the assessee is needed.

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