KURUMBER BETTA ESTATE Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE short question that is required to he considered is as to whether there is liability to pay interest on the amount in question with effect from July 6, 1987, as contended by the petitioner in this petition or from a later date on the basis of which the petitioner has been granted interest at the rate of 15 per cent. per annum.

(2.) THE question arises as follows : THE petitioner is a partnership firm and is represented by its managing agent. THE firm was carrying on business on acquisition of an estate known as Kurumber Betta Estate situated at Cherumully village in Gudallur Taluk, Nilgiri District. One of the partners, Shri Chenniah, expired in 1971. He happened to be indebted to the Income-tax Department and the property of the partnership became the subject-matter of an order of attachment by the Tax Recovery Officer, Bangalore, to the extent of share of Shri Chenniah in the partnership property and profits thereof in regard to tax arrears of Chenniah amounting Rs. 7,41,678.10.

(3.) THIS was done by the present petitioner by a communication dated July 6, 1987 (exhibit P-5). The manner in which and the purpose for which the said compliance was accorded by the petitioner by tender of a demand draft dated July 6, 1987, for Rs. 11,67,000 could be appreciated by reference to the following relevant contents of the said communication :