(1) If a person has given a notice to the Tax Officer pursuant to Section11 of the Act, the Tax Officer shall make identification of his/her notice if he/she appears in-person or by attorney upon a notice given by the officer and examine all evidence and proofs which he/she has received. If he/she does not so appear, the Tax Officer may cause his/her subordinate Tax Inspector to inquire into the matter. If, on the basis of the statement submitted after holding such inquiry, the Tax Officer is of the opinion that action has to be instituted, he/she shall institute necessary action. If he/she thinks that there are not adequate proofs to institute action, setting out his/her decision, the records of such person who has given the information shall have to keep in his/her office.
(2) If the matter referred to in the notice received pursuant to Sub-rule (1) is held to be true and tax has been recovered accordingly, the Tax Officer shall submit a report through the Director of the Tax Department to provide the reward to be given under the Act.
(3) If a person who has once given a notice does not appear or send his/her attorney subsequently before the Tax Officer as and when  required to so appear or even if he/she him/herself in-person or his/her attorney appears but does not submit any evidence and proof, the notice shall not be deemed to have been completed; and such person shall not be entitled to the reward.