JOB G. OOMMEN Vs. UNION OF INDIA

JUDGEMENT

(1.) These connected writ petitions are pertaining to certain properties of an assessee under the provisions of the Income Tax Act, 1961 (for short, the 'I.T. Act'), presently in the ownership and possession of the petitioners herein, pursuant to an auction sale of those properties for realization of some arrears payable by the original owner (assessee) under the provisions of the Kerala General Sales Tax Act, 1963 (for short, the 'KGST Act') and the Cashew Workers Welfare Fund dues.

(2.) One late P.N.Madhavan Pillai was the proprietor of M/s.Mohandas Cashew Factory, Arakkal, Kollam District. He was an assessee under the provisions of the KGST Act and had arrears in excess of Rs.58.00 lakhs for the period from 1995 onwards. He was also in arrears with respect to Cashew Workers Welfare Fund dues for the period from 1997 to 2000. For the realization of the afore amounts, revenue recovery proceedings were initiated under the provisions of the Revenue Recovery Act, 1968 (for short, 'RR Act'), and an extent of 78.30 Ares of his property was attached. Out of the afore property, an extent of 28.32 Ares of land were auctioned on 30/8/2006 in favour of one Smt.Sushamakumari and the sale was confirmed on 9/2/2007. The afore Smt.Sushamakumari assigned the said property to one Sri.Kishore, as per a sale deed dtd. 4/11/2009. The afore extent of the property and the factory building therein were purchased by the petitioner in W.P(C) No.50 of 2017 from Sri.Kishore, as per the sale deed dtd. 13/10/2011. He is stated to be conducting the Cashew Factory in the afore property in the factory building thereafter.

(3.) In the meantime, Ext.P10 communication dtd. 11/3/2015 was issued by the Regional Provident Fund Commissioner, directing payment of certain arrears payable by M/s.Mohandas Cashew Factory, referred to above. The 2nd respondent herein, in the meantime, had filed O.S.No.6 of 2007 before the Sub-Court, Kottarakkara against the deceased Madhavan Pillai and the Kerala State Financial Corporation alleging that the deceased availed financial assistance from the Corporation after mortgaging the immovable properties which are being independently proceeded against by the Income Tax Department for realization of income tax arrears payable by the deceased for the assessment year 1995-96. During the pendency of the suit, the assessee (Madhavan Pillai) passed away, and therefore, his wife and children were brought on record as additional defendants. The legal heirs who were brought on record filed a written statement pointing out that the property had already been sold in a public auction in 2006, and at present, the properties are in possession of third parties like the petitioners in these writ petitions. The suit instituted as above was disposed of by Ext.P11 judgment dtd. 31/7/2013 holding as under: