Section 225 — the law in short
What the courts have decided on section 225, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Statutory position — s.225: once the certificate is drawn up the Tax Recovery Officer has his own power to grant time and stay, a duty to stay the reduced part, and a duty to amend or cancel
CBDT Circulars & InstructionsCuts both ways
The certificate has already gone to the Tax Recovery Officer. The Commissioner (Appeals) has cut the addition but the Department has gone to the Tribunal. Do I have to pay the whole certificate amount, and who do I ask?
You ask the Tax Recovery Officer, and on the reduced part he has no discretion. Section 225 has three sub-sections. Sub-section (1) makes it lawful for the Tax Recovery Officer to grant time for the payment of any tax, and provides that when he does so he shall stay the proceedings for the recovery of such tax until the expiry of the time so granted. Sub-section (2) deals with your situation: where the order giving rise to a demand for which a certificate has been drawn up is modified in appeal or other proceeding under the Act and, as a consequence, the demand is reduced, but the order is the subject-matter of further proceeding under the Act, the Tax Recovery Officer shall stay the recovery of such part of the amount specified in the certificate as pertains to the said reduction, for the period for which the appeal or other proceeding remains pending. Sub-section (3) requires him, once the order which was the subject-matter of the appeal or other proceeding has become final and conclusive, to amend the certificate or cancel it, as the case may be. Each of the second and third is expressed with 'shall'.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.
