TAX RECOVERY OFFICER BANGALORE Vs. P BALCHAND

JUDGEMENT

(1.) THIS is an appeal by the TRO of the I.T. department against the order of Jagannatha Shetty J. in Writ Petition No. 1863 of 1971 (P. Balchand v. TRO : [1974]95ITR321(KAR) ), by which a writ of mandamus was issued to the TRO to forbear from recovering tax from the respondent, Balchand, on the basis of the certificate issued by the ITO (Collection), Circle -1, Bangalore.

(2.) THE respondent, Balchand, was a partner of a firm, Hindusthan Jewellery Mart, till November 13, 1966. For the assessment year 1967 -68, an assessment was made in the name of the firm on February 12, 1968. The assessment was in the status of an unregistered firm.

(3.) ON March 30, 1969, the ITO (Collection), Circle -1, Bangalore, issued a certificate under s. 222 of the Income -tax Act, 1961 (hereinafter called 'the Act'), to the TRO to recover a sum of Rs. 31,919 together with interest. That certificate showed Hindusthan Jewellery Mart as the assessee is default. Pursuant to the said certificate, the TRO on March 25, 1971, issued a notice of attachment to the Hindusthan Drug House purporting to be under r. 32 of the Second Schedule to the Act, attaching the amount standing to the respondent's credit in the books of account of that firm. The respondent challenged this action of the TRO as being not warranted by law.