Amended and updated notes on section 225 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Stay of proceedings in pursuance of certificate and amendment or cancellation thereof.
Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 225 of IT Act 1961 provides for Stay of proceedings in pursuance of certificate and amendment or cancellation thereof.
Recently, we have discussed in detail section 224 (Validity of certificate and cancellation or amendment thereof) of IT Act 1961. Today, we learn the provisions of section 225 of Income-tax Act 1961. The amended provision of section 225 is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 225 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-225: Stay of proceedings in pursuance of certificate and amendment or cancellation thereof
Section 225(1) of Income Tax Act
It shall be lawful for the Tax Recovery Officer to grant time for the payment of any tax and when he does so, he shall stay the proceedings for the recovery of such tax until the expiry of the time so granted.
Section 225(2) of Income Tax Act
Where the order giving rise to a demand of tax for which a certificate has been drawn up is modified in appeal or other proceeding under this Act, and, as a consequence thereof, the demand is reduced but the order is the subject-matter of further proceeding under this 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.
Section 225(3) of Income Tax Act
Where a certificate has been drawn up and subsequently the amount of the outstanding demand is reduced as a result of an appeal or other proceeding under this Act, the Tax Recovery Officer shall, when the order which was the subject-matter of such appeal or other proceeding has become final and conclusive, amend the certificate, or cancel it, as the case may be.