INCOME TAX RULES, 1982 - PakSearch.com

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CHAPTER C.- ATTACHMENT AND SALE OF IMMOVABLE PROPERTY ATTACHMENT

137. Attachment.- Attachment of the immovable property of the defaulter shall be made by an order prohibiting the defaulter from transferring or subjecting the property to a charge in any manner and prohibiting all persons from taking any benefit under such transfer or charge.

138. Service of notice of attachment.- A copy of the order of attachment shall be served on the defaulter.

139. proclamation of attachment.- The order of attachment shall be proclaimed at some place on or adjacent to the property attached by beat of drum or other customary mode, and a copy of the order shall be affixed at a conspicuous of the property and also at a conspicuous place of the office of the Tax Recovery Officer.

140. Sale and proclamation of sales.- (1) The Tax Recovery Officer may direct that any immovable property which has been attached, or such portion thereof as may seem necessary to satisfy the Certificate, shall be sold.

(2) Where any immovable property is ordered to be sold, the Tax Recovery Officer shall cause a proclamation of the intended sale to be made in the language of the district.

141. Contents of proclamation.- (1) A proclamation of sale of immovable property shall be drawn up after service of notice to the defaulter, and shall state the time and place of sale and also specify--
(a) the location of the property to be sold;
(b) as fairly and accurately as possible the revenue or rent, if any, assessed upon the property or any part thereof; and
(c) the amount for the recovery of which the sale is ordered.

(2) The proclamation may also specify any other thing which the Tax
Recovery Officer considers material for a purchaser to know in order to judge the nature and value of the property.

142. Mode of making proclamation.- (1) Every proclamation for the sale of immovable property shall be made at some place on or near such property by beat of drum or other customary mode, and a copy of the proclamation shall be affixed at a conspicuous place of the property and also at a conspicuous of the office of the Tax Recovery Officer.

(2) Where the Tax Recovery, Officer so directs, such proclamation may be published in one or two newspapers.

(3) Where the property is divided into lots for the purpose of being sold separately, it shall not be necessary to make a separate proclamation for each lot, unless proper notice of the sale cannot, in the opinion of the Tax Recovery Officer, otherwise be given.

143. Time of sale.- No sale of immovable property under these rules shall, without the consent in writing of the defaulter, take place until after the expiration of at least thirty days from the date on which a copy of the proclamation of sale has been affixed on the property or in the office of the Tax Recovery Officer, whichever is later.

144. Sale to be by auction or by tender.- The sale shall be made by public auction or by tender to the highest bider and shall be subject to confirmation by the Tax Recovery Officer.

145. Deposit by purchaser and re-sale in default.- (1) On every sale of immovable property, the person declared to be the purchaser shall pay, immediately after such declaration, a deposit of twenty-five per cent of the amount of his purchase money to the officer conducting the sale; and in default of such deposit the property shall forthwith be resold.

(2) The full amount of purchase money payable shall be paid by the purchaser to the Tax Recovery Officer on or before the fifteenth day from the date of the sale of the property.

146. Procedure in default of payment.- In default of payment within the period mentioned in rule 145 twenty per cent of deposit made under sub-rule (1) of that rule shall be forfeited and the rest shall be kept as deposit to be dealt with as mentioned in rule 147 and the property shall be re-sold and the defaulting purchaser shall forfeit all claims to the property or to any part of the sum for which it may be subsequently sold except to such sums as may be found refundable to him under rule 147.

147. Amount recoverable from purchaser in default.- Any deficiency of price which may happen on a re-sale by reason of the purchaser's default, including all expenses attending such re-sale, shall be recoverable from the defaulting purchaser up to the maximum of eighty per cent of the deposit made by him under sub-rule (1) of rule 145 and kept as a deposit under rule 146 and if there is any surplus after meeting the deficiency the same shall be refunded to the defaulting purchaser.

148. Authority to bid.- All persons bidding at the sale shall be required to declare if they are bidding on their own behalf, or on behalf of their principals and. in the latter case, they shall be required to deposit their authority, and in default their bids shall be rejected.

149. Application to set aside sale of immovable property on deposit.- (1) Where immovable property has been sold in execution of a Certificate, the defaulter, or any person whose interests are affected by the sale, may, at any time within thirty days from the date of the sale, apply to the Tax Recovery Officer to set aside the sale, on his depositing-

(a) for payment to the Deputy Commissioner of Income Tax, the amount specified in the proclamation of sale as that for the recovery of which the sale was ordered with interest thereon at the rate of eight per cent per annum, calculated from the date of proclamation of sale to the date when the deposit is made; and

(b) for payment to the purchaser, as penalty, a sum equal to ten per cent of the purchase money.

(2) Where a person makes an application under rule 150 for setting aside the sale of his immovable property, he shall not, unless he withdraws that application, be entitled to make or prosecute an application under this rule.

150. Application to set aside sale of immovable property on ground of non-service of notice or irregularity.- Where immovable property has been sold in execution of a Certificate, the Income Tax Officer, the defaulter, or any person whose interests are affected by the sale, may, at any time within thirty days from the date of the sale, apply to the Tax Recovery Officer to set aside the sale of the immovable property on the ground that notice was not served on the defaulter to pay the arrears as required by these rules or on the ground of a material irregularity in publishing or conducting the sale:

Provided that-
(a) no sale shall be set aside on any such ground unless the Tax Recovery Officer is satisfied on the basis of evidence produced before him that the applicant has sustained loss by reason of the non-service or irregularity; and

(b) an application made by a defaulter under this rule shall be disallowed unless he deposits the amount recoverable from him in execution of the Certificate.

151. Setting aside sale where defaulter has no saleable interest.- At any time within thirty days of the sale, the purchaser may apply to the Tax Recovery Officer to set aside the sale on the ground that the defaulter had no saleable interest in the property sold.

152. Confirmation of sale.- (1) Where no application is made for setting aside the sale under the foregoing rules or where such an application is made and disallowed by the Tax Recovery Officer, he shall, if the full amount of the purchase money has been paid, make an order confirming the sale, and thereupon the sale shall become absolute.

(2) Where such application is made and allowed, and where, in the case of an application made to set aside the sale on deposit of the amount and penalty and interest, the deposit is made within thirty days from the date of sale, the Tax Recovery Officer shall make an order setting aside the sale:

Provided that no such order shall be made unless notice of the application has been given to the persons affected thereby.

153. Return of purchase money in certain cases.- Where a sale of immovable property is set aside, any money paid or deposited by the purchaser on account of the purchase, together with the penalty, if any, deposited for payment to the purchaser, shall be paid to the purchaser.

154. Sale certificate.- (1) Where a sale of immovable property has become absolute, the Tax Recovery Officer shall grant a certificate specifying the property sold, and the name of the person who at the time of sale was declared to be the purchaser.

(2) Such certificate shall state the date on which the sale become absolute.

155. Postponement of sale to enable defaulter to raise amount due under Certificate.- (1) Where an order for the sale of immovable property has been made and the defaulter satisfies the Tax Recovery Officer that there is reason to believe that the amount of the Certificate may be raised by the mortgage or lease or private sale of such property, or some part thereof, or of any other immovable property of the defaulter, the Tax Recovery Officer may, on the application of the defaulter, postpone the sale of the property specified in the order for sale, on such terms and for such period as he thinks proper, to enable the defaulter to raise the amount.

(2) In such case, the Tax Recovery Officer shall grant a certificate to the defaulter authorising him, within a period to be mentioned therein and notwithstanding anything contained in these rules, to make the proposed mortgage, lease or sale:

Provided that all money payable under such mortgage, lease or sale shall be paid, not to the defaulter, but to the Tax Recovery Officer:

Provided further that no mortgage, lease or sale under this rule shall become absolute until it has been confirmed by the Tax Recovery Officer.

156. Fresh proclamation before resale.- Every re-sale of immovable property, in default of payment of the purchase money within the period allowed for such payment, shall be made after the issue of a fresh proclamation in the manner and for the period herein-before provided for the sale.

157. Bid of co-sharer to have preference.- Where the property sold is a share of undivided immovable property and two or more persons, of whom one is a co-sharer, respectively bid the same sum for such property or for any lot, the bid of the co-sharer shall have preference.

CHAPTER D.- APPOINTMENT OF RECEIVER

158. Appointment of receiver for business.- (1) Where the property of a defaulter consists of a business, the Tax Recovery Officer may attach the business and appoint a person as receiver to manage the business.

(2) Attachment of a business under this rule shall be made by an order prohibiting the defaulter from transferring or subjecting the business to a charge in any manner and prohibiting all persons from taking any benefit under such transfer or charge and intimating that the business has been attached under this rule. A copy of the order of attachment shall be served on the defaulter and another copy shall be affixed on a conspicuous part of the premises in which the business is carried on and at a conspicuous place in the office of the Tax Recovery Officer.

(3) Where the Tax Recovery Officer so directs, such order shall also be published in a newspaper.

159. Appointment of receiver for immovable property.- Where immovable property is attached, the Tax Recovery Officer may, instead of directing a sale of the property, appoint a person as receiver to manage such property.

160. Power of receivers, etc.- (1) Where it appears to the Tax Recovery Officer to be just and convenient, the Officer may by order-

(a) remove any person from the possession or custody of the property;
(b) commit the same to the possession, custody or management of the receiver; and
(c) confer upon the receiver all such powers, as to bringing and defending suits and for the realisation, management, protection, preservation and improvement of the property, the collection of the rents and profits thereof, the application and disposal of such rents and profits, and the execution of documents as the owner himself has or such of those powers as the Tax Recovery Officer thinks fit:

Provided that nothing in this rule shall authorize the Tax Recovery Officer to remove from the possession or custody of property any person whom any party to the recovery proceedings has not a present right so to remove.

(2) The Tax Recovery Officer may by general or special order fix the amount to be paid as remuneration for the services of the receiver.
(3) Every receiver appointed by the Tax Recovery Officer shall-

(a) furnish such security, if any, as the Tax Recovery Officer thinks to account duly for what he shall receive in respect of the property;
(b) submit his accounts at such periods and in such form as the Tax Recovery Officer directs;
(c) pay the amount due from him as the Tax Recovery Officer directs; and
(d) be responsible for any loss occasioned to the property by his willful default or gross negligence.

(4) The profits or rents and profits, of such business or other property, shall after defraying the expenses of management, be adjusted towards discharge of the arrears, and the balance, if any, shall be paid to the defaulter.

161. Withdrawal of management.- The attachment and management under rule 158 or 159 may be withdrawn at any time at the discretion of the Tax Recovery Officer, or if the arrears are discharged by receipt of such profits and rents or are otherwise paid.

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