Section 223 of the Income-tax Act, 1961: Which Tax Recovery Officer Can Recover Tax?
Section 223 identifies the Tax Recovery Officer (TRO) competent to recover certified tax arrears and explains how a recovery certificate can be sent to another TRO when an assessee resides or holds property in more than one jurisdiction.
What does section 223 mean?
Tax Recovery Officer (TRO) means the income-tax authority empowered to undertake recovery of tax arrears in accordance with the applicable law. A recovery certificate is the prescribed statement of arrears drawn up under section 222 of the 1961 Act, enabling recovery action under the Second Schedule.
Section 223 deals primarily with territorial competence: which TRO may act and when another TRO may also act. It does not itself create a new tax liability or replace the statutory safeguards governing attachment, sale or other recovery methods.
Jurisdiction of the Tax Recovery Officer: section 223(1)
Under section 223(1), a TRO competent to act under section 222 may be the officer within whose jurisdiction:
- The assessee carries on a business or profession, or the principal place of that business or profession is situated; or
- The assessee resides, or any movable or immovable property belonging to the assessee is situated.
Jurisdiction is determined by the relevant orders or directions of the Central Board of Direct Taxes (CBDT), or by an authorised senior income-tax authority acting under the statutory framework, including section 120. Accordingly, an address or property location alone should not be treated as conclusive without checking the operative jurisdiction order.
Multiple jurisdictions: section 223(2)
Where an assessee has property in more than one TRO jurisdiction, the TRO who drew up the certificate may send the certificate, or a properly certified copy specifying the recoverable amount, to another competent TRO if:
- The originating TRO cannot recover the entire amount through property within that officer's jurisdiction; or
- The originating TRO considers transfer necessary to expedite or secure recovery of all or part of the arrears.
The receiving TRO may then proceed with recovery as though the certificate or certified copy had been drawn up by that officer. This mechanism supports recovery across territorial boundaries; it does not authorise recovery beyond the amount lawfully outstanding.
Illustrative example
An assessee operates a business in Mumbai and owns property in Delhi. If a competent TRO issues a recovery certificate and the statutory conditions of section 223(2) are met, the certificate or certified copy may be forwarded to the appropriate TRO in Delhi for recovery against property situated there, subject to the governing rules.
What should a taxpayer check during recovery?
- Identify the demand: Verify the assessment or other order, notice of demand, amount outstanding and any payments or adjustments.
- Check the officer's authority: Confirm the TRO's assigned jurisdiction and, where applicable, the transmission of the certificate under section 223(2).
- Examine recovery steps: Review notices, attachments or sale proceedings against the applicable recovery rules in the Second Schedule.
- Document objections and relief: Raise errors in amount, identity, property ownership, jurisdiction or procedure through the remedy applicable to the specific proceedings. An appeal or pending representation does not automatically suspend every recovery action.
Depending on the facts, related provisions on demand, default, penalty, certificates, amendments and stays may also be relevant. A TRO's power to proceed remains subject to the law and procedural safeguards applicable to the particular case.
Section 223 statutory extract and amendment history
The following text and amendment notes are retained from the original page for historical reference. Superscript-style amendment markers in the original are reproduced as plain text; refer to official consolidated legislation for authoritative wording.
Show the original section text and amendment notes
1 (1) The Tax Recovery Officer competent to take action under section 222
shall be-
(a) the Tax Recovery Officer within whose jurisdiction the assessee carries on
his business or profession or within whose jurisdiction the principal place of
his business or profession is situate, or
(b) the Tax Recovery Officer within whose jurisdiction the assessee resides or any movable or immovable property of the assessee is situate, the jurisdiction for this purpose being the jurisdiction assigned to the Tax Recovery Officer under the orders or directions issued by the Board, or by the 2 Principal Chief Commissioner or Chief Commissioner or 3 Principal Commissioner or Commissioner who is authorised in this behalf by the Board in pursuance of section 120.
(2) Where an assessee has property within the jurisdiction of more than one
Tax Recovery Officer and the Tax Recovery Officer by whom the certificate is
drawn up-
(a) is not able to recover the entire amount by sale of the property, movable or
immovable, within his jurisdiction, or
(b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole or any part of the amount under this Chapter, it is necessary so to do, he may send the certificate or, where only a part of the amount is to be recovered, a copy of the certificate certified in the prescribed manner and specifying the amount to be recovered to a Tax Recovery Officer within whose jurisdiction the assessee resides or has property and, thereupon, that Tax Recovery Officer shall also proceed to recover the amount under this Chapter as if the certificate or copy thereof had been drawn up by him.
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1. Subs. by Act 4 of 1988, s. 87, for sections 223,
224 and 225 (w.e.f. 1-4-1989).
2. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013).
3. Subs. by s. 4, ibid., for "Commissioner" (w.e.f. 1-6-2013).
1. Subs. by Act 4 of 1988, s. 87, for sections 223,
224 and 225 (w.e.f. 1-4-1989).
2. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013).
3. Subs. by s. 4, ibid., for "Commissioner" (w.e.f. 1-6-2013).