P BALCHAND Vs. TAX RECOVERY OFFICER

JUDGEMENT

(1.) This is a petition under Art.226 of the Constitution, in which the petitioner challenges the recovery proceedings under the Indian, Income Tax Act, 1961 (hereinafter called 'the Act').

(2.) The petitioner was a partner of the firm named 'Hindusthan Jewellery Mart' upto 13-11-1966. For the assessment year 1967-68 the said firm was assessed to income-tax as an unregistered firm. As per the assessment order dt. 12-2-1968, the firm was liable to pay Rs.32,840. The petitioner unsuccessfully challenged the assessment order in appeal before the appellate Assistant Commissioner and also on further appeal before the Income-tax Appellate Tribunal. After 13-11-1966, the petitioner became a partner of a new firm named Hindusthan Drug House.

(3.) On 30-3-1969, the Income-tax Officer (Collection), Circle 1, Bangalore 1, issued a certificate under S.222 of the Act to the Tax Recovery Officer, Bangalore to recover a sum of Rs.31,919 together with certain interest The certificate showed the ussessee in default as 'Hindusthan Jewellery Mart'. Pursuant to the said certificate, the Tax Recovery Officer issued a notice of demand for Rs.35,710 to the Hindusthan Jewellery Mart. The petitioner received that notice and paid a sum of Rs.6336. On 25-3-1971, the Tax Recovery Officer issued a notice of attachment to the firm 'Hindusthan Drug House', attaching the amount standing to the petitioner's credit in the books of accounts of the said firm. The petitioner challenges the validity of the said recovery proceedings taken against him.