Recovery proceedings under income-tax law begin with the certificate to the Collector, preserving limitation and sale authority.

For purposes of Section 46(7) of the Income-tax Act, proceedings for recovery commence when the Income-tax Officer forwards the certificate to the Collector under Section 46(2), because recovery proceedings are distinct from assessment proceedings. On that construction, the recovery action was within time and not barred by limitation. The Collector was also held to have authority to proceed with sale under the Revenue Recovery Act, and no statutory breach was shown in the proposed mode of sale. Any objection to the manner of selling the property in inconvenient plots was to be raised before the Collector in the first instance.

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Issues: (i) Whether the recovery proceedings were barred by limitation under Section 46(7) of the Income-tax Act because they were commenced after one year from the last day of the financial year in which demand was made. (ii) Whether the Collector was without authority to proceed with the sale of the property in the manner proposed.

Issue (i): Whether the recovery proceedings were barred by limitation under Section 46(7) of the Income-tax Act because they were commenced after one year from the last day of the financial year in which demand was made.

Analysis: The word "proceedings for the recovery" was construed to include the entire statutory process for realising the arrears. The assessment process was treated as distinct from the recovery process, and the first step in recovery was held to be the forwarding of the certificate by the Income-tax Officer to the Collector under Section 46(2). On that construction, the relevant proceedings had begun within the period prescribed by Section 46(7).

Conclusion: The recovery proceedings were not barred by limitation and the contention failed.

Issue (ii): Whether the Collector was without authority to proceed with the sale of the property in the manner proposed.

Analysis: The Collector's power to recover arrears under the Revenue Recovery Act was accepted, and no contravention of any statutory provision was established in bringing the property to sale. Any grievance as to the manner of sale in inconvenient plots was left to be raised before the Collector in the first instance.

Conclusion: The challenge to the proposed sale failed.

Final Conclusion: The application was rejected, and the petitioners obtained no relief.

Ratio Decidendi: For the purpose of Section 46(7) of the Income-tax Act, proceedings for recovery commence when the Income-tax Officer forwards the certificate to the Collector under Section 46(2).

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