S N SANTHALINGAM Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner is challenging the notice styled as "Notice of demand to defaulter" under r. 2 of the Second Schedule to the IT Act, 1961, dt. August 8, 1975, issued by the TRO, Bangalore, as being without jurisdiction. THE notice is addressed to the petitioner who is a resident of Tirupur and states that a certificate No. FN. 3890 dt. July 31, 1975, has been forwarded to him by the ITO, Central Circle-II, Bangalore, for the recovery of an amount of Rs. 96,710, being arrears of income- tax due by M/s Rajalakshmi Textiles. THE notice further stated that in default of payment steps would be taken in accordance with the Second Schedule to the IT Act, 1961.

(2.) THE facts are not in dispute. M/s Rajalakshmi Textiles was a registered firm and had been assessed to income-tax for the assessment years 1962-63 and 1963-64 in the status of a registered firm. Against the order of assessment, an appeal had been filed to the AAC and during the pendency of that appeal, the certificate had been issued by the ITO, Central Circle-II, Bangalore, for recovery of the amount due by virtue of the original assessment orders. THE contention for the petitioner is that he was not the assessee, that no notice of demand of any tax payable had been issued to him consequent on such assessment, that he could not be considered as an assessee in default and a certificate could not be issued against him. It is also contended that the certificate had not been issued in his name and could not be so issued. Reliance is placed on the decision of this Court in P. Balchand vs. TRO [1974] 95 ITR 321 (Kar) and the further judgment on appeal therefrom in Writ Appeal No. 22 of 1974 dt. January 20,1975 [TRO vs. P.Balchand [1980]121 ITR 871 (Kar) infra]. Though the petitioner stated in the writ petition that he was not aware as to in whose name the certificate had been issued, Shri Rajasekhara Murthy has made available the relevant file and it is seen that the certificate issued under s. 222 of the IT Act, 1961, dt. July 31, 1975, mentions the amount as due from M/s Rajalakshmi Textiles and it is also added "by partners, (1) V. T. Surappa, (2) S. N. Shanthalingam". THE opening words are as follows :