Recovery u/s 226(3)

Querist : Anonymous (Querist) 15 October 2011 This query is : Resolved

Is second party liable to pay amount due to first party (assessee) , to third party (Tax Department) , in case notice u/s 226(3) is issued to second party, i.e is it necessary to comply with 226(3)?
What are the legal complication in complying with 226(3)as aganist first party(assessee).

Follow Query

Report Abuse

Vineet (Expert) 15 October 2011
Notice u/s 226(3) is garnishee notice to be complied with if the sums payable to first party are due. Such notice is issued in respect of not only present outstandings but any sum which becomes in future also to the extent of recoverable mentioned in the notice.

Any default in compliance to garnishee notice puts the second party in the same pedestal as of first party as he is also treated as assessee in default in respect of such sums and IT department may initiate recovery proceedings against the garnishee also.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now