16-A. Further mode of recovery

(1)

(a) Notwithstanding anything contained in section 16 or any other law for the time being in force or any contract to the contrary the appropriate authority may, at any time or from time to time by notice in writing (a copy of which shall be forwarded to the assessee at his last known address) require any person from whom money is due, or may become due to the assessee or any person who holds or may subsequently hold money for or on account of the assessee, to pay to the appropriate authority either forthwith if the money has become due or is held, or within the time specified in the notice (not being before the money becomes due or is held) as much of the money as is sufficient to pay the amount due by the assessee in respect of the arrears or whole of the money when it is equal to or less than that amount;

(b) the assessing authority may at any time or from time to time amend or revoke any such notice or extend the time limit for making any payment in pursuance of the notice and send necessary intimation to the assessee as well;

(c) any person making any payment in compliance with the notice under clause (a) shall be deemed to have made the payment under the authority of the assessee and the receipt of the appropriate authority shall constitute a sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt;

(d) Any person making any payment to the assessee after receipt of the notice shall be personally liable to the appropriate authority to the extent of his own liability to the assessee, so discharged, or to the extent of the assessee's liability for any sum specified in the notice, whichever is lesser;

(e) Where any person to whom a notice under clause (a) is sent objects to it by a statement on oath on the ground that the sum demanded or any part thereof is not due to the assessee or that he does not hold any amount of money for or on account of the assessee, then, nothing contained in this section shall be deemed to require such person to pay the sum demanded, or any part thereof to the appropriate authority but if it is discovered that such statement was false in any material part such person shall be personally liable to the appropriate authority to the extent of his own liability to the assessee on the date of the receipt of the notice or to the extent of the assessee's liability for the sum specified in the notice, whichever is lesser;

(f) any amount which a person is required to pay to the appropriate authority or for which he is liable to the appropriate authority under this section shall, if it remains unpaid, be a charge on the properties of the said person which shall be recovered from him as if it were an arrear of land revenue.

(3) Save as otherwise provided in this section, every person to whom a notice is issued under sub-section (1) shall be bound to comply with such notice, and in particular, where such notice is issued to a Post Office, Banking Company or Insurer, it shall not be necessary for any pass books, policy or any other document to be produced for the purpose of any entry, endorsement or like being made before payment is made notwithstanding any rule, practice or requirement to the contrary.

Explanation - For the purpose of this section the amount due to an assessee shall be computed after taking into account such claims as may have fallen due for payment by such assessee and may be lawfully subsisting.