ITO Section 138

Recovery of tax out of property and through arrest of taxpayer.

(1) For the purpose of recovering any tax due by a taxpayer, the Commissioner may serve upon the taxpayer a notice in the prescribed form requiring him to pay the said amount within such time as may be specified in the notice.

(2) If the amount referred to in the notice issued under sub-section (1) is not paid within the time specified therein or within the further time, if any, allowed by the Commissioner, the Commissioner may proceed to recover from the taxpayer the said amount by one or more of the following modes, namely:

• (a) attachment and sale of any movable or immovable property of the taxpayer;
• (b) appointment of a receiver for the management of the movable or immovable property of the taxpayer; [ ]
• (c) arrest of the taxpayer and his detention in prison for a period not exceeding six months  [; and
• (d) as specified under clauses (a), (ca) and (d) of sub-section (I) of section 48 of the Sales Tax Act, 1990.]

(3) For the purposes of recovery of tax under sub-section (2), the Commissioner shall have the same powers as a Civil Court has under the Code of Civil Procedure, 1908 (Act V of 1908), for the purposes of the recovery of any amount due under a decree.

[(3A) Notwithstanding anything contained in this Ordinance or any other law or any rule, any decision or judgment of any court, forum or authority, the tax payable under any provision of this Ordinance or any assessment order shall become immediately payable subject to the following conditions:

• (a) that the case has been decided in the favor of the department at three appellate forums including the High Court;
• (b) that the recovery under this section shall only be made to the extent of lowest amount of demand which has been confirmed by any of the three appellate forums; and
• (c) that the tax payable exceeds rupees two hundred million,

and the Commissioner shall proceed to recover the said amount irrespective of the time provided under any other provision or the said decision or judgment.]

(4) The [Board] may make rules regulating the procedure for the recovery of tax under this section and any other matter connected with, or incidental to, the operation of this section.]