SEGHU BUCHIAH SETTY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner Seghu Buchiah Setty has presented these two petition sunder article 226 of the constitution of India for issue of a writ of certiorari or direction in the nature of a writ of certiorari quashing the proceedings of the Income-tax Officer, Kolar, and the Commissioner of Income-tax, Bangalore, in the petitioner cases under section 45 and 46 of the Indian Income-tax Act for the assessment years 1953-54 and 1954-55.

(2.) TWO separate orders for the years 1953-54 and 1954-55 were passed by the Income-tax officer against the petitioner under section 23(4) of the Indian Income-tax Act fixing up his assessable income for the assessment year 1953-54 at Rs. 61,000 and demanding a tax of Rs. 19,808-1-0 and an assessable income of Rs. 1,21,000 for the assessment year 1954-1955 and demanding a tax of Rs. 66,601-3-0. The petitioner presented two separate applications to the Income-tax Officer, Kolar, under section 27 of the Indian Income-tax Act requesting him to cancel the assessments and to proceed to make fresh assessments. The applications were rejected on the ground that there was no sufficient cause for non-compliance with the notice under section 22(2) of the Indian Income-tax Act. The petitioner then presented two appeals against the ex parte assessment orders passed against him under section 23(4) of the Act and also against the orders passed under section 27 of the Act to the Appellate Assistant Commissioner of Income-tax, "A" Range, Bangalore. The learned Appellate Assistant Commissioner of Income-tax reduced the assessable income of the petitioner substantially for the two years and fixed the tax due for the year 1953-54 at Rs. 4,215-9-0 and for the year 1954-55 at Rs. 13,346-8-0. Before the Appellate Assistant Commissioner of Income-tax passed these orders demand notices in the prescribed forms had been issued to the petitioner by the Income-tax Officer fixing up a particular date for the payment of the amount. The petitioner did not pay the money within the time prescribed. Therefore, the Income-tax Officer issued a certificate to the Collector of Kolar District to collect the money. Separate notices of demand were not issued by the Income-tax Officer issued a certificate to the collector of Kolar District to collect the money. Separate notices of demand were not issued by the Income-tax Officer after the Appellate Assistant commissioner of Income-tax reduced the taxable income of the petitioner and also the tax levied by the Income-tax Officer. It is stated that the petitioner has preferred the appeals to the Income-tax Appellate Tribunal against the orders passed by the appellate Assistant Commissioner in Income-tax and they are yet pending. In the meanwhile the Collector of Kolar District, who had attached the immoveable properties of the petitioner, was taking necessary action to recover the tax due. After the Appellate Assistant Commissioner of Income-tax passed the orders reducing the taxable income of the petitioner and also the tax due by the petitioner for the two years, a letter was addressed by the Income-tax Officer, Kolar Circle, on February 14, 1956, intimating that the Appellate Assistant commissioner of Income-tax had fixed up his liability to income-tax for the years 1953-54 and 1954-55 at Rs. 4,215-9-0 and Rs. 13,346-8-0 respectively and that he should pay the amount at once into the local treasury and intimate that fact to the office failing which heavy penalty will be imposed, the Collector of Kolar District proceeded to bring the immovable properties of the petitioner for sale that had been attached on the basis of the certificate issued by the Income-tax Officer originally. These proceedings were taken by the collector on the basis of the original certificate issued by the Income-tax Officer which amount was reduced by the Appellate Assistant Commissioner of Income-tax.

(3.) IN the result, therefore, these writ petitions are allowed. A writ as prayed for by the petitioner will issue in these two petitions. The petitioner will get his costs from the respondents. We fix advocate's fee at Rs. 100 (Rupees one hundred) in each of these petitions.