T K NARENDRAN Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner has filed this original petition for issuance of a writ of certiorari quashing exhibits P-4 and P-6 notices issued by the second respondent, the Tax Recovery Officer. Exhibit P-4 is a notice issued under Sections 222 and 223 of the Income-tax Act, 1961, demanding a sum of Rs. 5,91,829 being arrears of income-tax due from Wynad Financing Corporation. Exhibit P-6 is a further communication issued by the second respondent stating that since the firm is defunct, the petitioner and others are jointly and severally responsible to clear the arrears as partners of the defunct firm. It is also stated that coercive measures for recovering the arrears by attachment and sale of movable properties are proposed to be initiated. THE petitioner was also given an opportunity to pay the said amount. According to the petitioner, he was not a partner of the firm, "Wynad Financing Corporation", who is the assessee in default. It is stated that the petitioner's wife was one of the partners, as could be seen from exhibit P-1 agreement. Learned counsel appearing for the petitioner submitted that since the petitioner is not a partner of the firm, which is now defunct, the second respondent has no authority to proceed against the petitioner for recovery of arrears of income-tax due from the defunct firm proposed in exhibits P-4 and P-6 notices.

(2.) I have heard Sri P. K. R. Menon, learned senior Central Government standing counsel on behalf of the respondents. Learned senior counsel submitted that the firm, Wynad Financing Corporation, has filed an application before the Settlement Commission (IT and WT), Additional Bench, Madras, for settlement of its tax liabilities and exhibit P-2 is the proceedings of the said Commission. Learned counsel further submitted that in the proceedings before the Settlement Commission the petitioner along with the advocate appeared in his capacity as a partner. The said fact is evident from the copy of the proceedings exhibit P-2 itself. Learned counsel has placed before me a photocopy of the said proceedings in which against serial number 6--present for the applicant, it is shown "Sri P. J. Jacob, advocate, of Sri T. K. Narendran, partner". Learned senior counsel further submitted that in exhibit P-2 against column No. 6 the name "Sri T. K. Narendran appears but the word 'partner' is omitted." Learned counsel also brought to my notice paragraph 3.1 of exhibit P-2 where the Settlement Commission in the context of grant of registration to the firm considered the question regarding the genuineness of the firm. In that context, the Settlement Commission observed as follows :