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Issues: Whether recovery of income-tax arrears after the commencement of the Income-tax Act, 1961 must be made only in accordance with section 222 and the Second Schedule of that Act, thereby excluding recourse to the Orissa Public Demands Recovery Act, 1962.
Analysis: Section 222 of the Income-tax Act, 1961, read with the Second Schedule, provides a complete and self-contained mechanism for recovery of tax arrears. The provision authorises the Tax Recovery Officer to recover the amount by the prescribed modes, and the statutory scheme is reinforced by section 226. The corresponding provision under the earlier law, section 46 of the Indian Income-tax Act, 1922, had operated through the then existing recovery machinery, but after the 1961 Act came into force, the legislature substituted a specific recovery procedure of its own. Where a statute prescribes a particular mode for recovery of a demand, that mode alone must be followed. Resort to the Orissa Public Demands Recovery Act would also create the possibility of inconsistent recovery methods, including a mode not available under section 15 of that Act, which is inconsistent with the scheme of the 1961 Act.
Conclusion: Recovery had to be pursued only under section 222 and the Second Schedule of the Income-tax Act, 1961, and not under the Orissa Public Demands Recovery Act, 1962, in favour of the assessee.
Ratio Decidendi: Where the Income-tax Act, 1961 prescribes a complete and specific procedure for recovery of tax arrears, that special statutory mechanism excludes recourse to a general recovery law by necessary implication.
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