INCOME TAX OFFICER ALLEPPY Vs. M C PONNOOSE

JUDGEMENT

(1.) These two appeals by special leave involve a common question relating to the validity of a notification issued by the Government of Kerala in August 1963 empowering certain revenue officials including the Taluka Tahsildar to exercise the powers of a Tax Recovery Officer under the Income Tax Act, 1961, hereinafter called the Act. The notification was expressly stated to be effective from 1st April, 1962-a date prior to the date of the notification.

(2.) The facts in one of the appeals (C. A. 942/66) may be stated:One Kunchacko of Alleppey allowed the income-tax dues from him to fall into arrears. The Income-Tax Officer took steps to recover the arrears through the Tahsildar. Certain shares standing in the name of the assessee were attached by the Tahsildar. The first respondent Ponnoose claimed to have obtained a decree for a certain sum against the assessee. He also got the shares standing in the name of the assessee attached in execution proceedings. Ponnoose filed a petition under Art. 226 of the Constitution in the High Court of Kerala in which he challenged the action taken by the revenue officials including the Tahsildar for getting the shares, which had been attached, sold for satisfaction of the income-tax dues of the asssessee.

(3.) The learned Single Judge held that the notification empowering the Tahsildar to exercise the powers of a Tax Recovery Officer under the Act with retrospective effect was invalid. Consequently the attachments made by the Tahsildar were quashed. This view was affirmed by a Division Bench in appeal.