(1.) THE is aggrieved by exhibits P-l, P-2 and P-4 proceedings of the second respondent for realisation of income-tax due from Centre for Science and Technological Studies, Trivandrum. Proceedings were initiated against the petitioner under Section 226(3) of the Income-tax Act, 1961, on the ground that a sum of Rs. 11,73,085 is seen from the balance-sheet of the said defaulter as advance given to the school of engineering of which the petitioner is the proprietor. In reply to exhibits P-l and P-2, the petitioner submitted exhibit P-3 reply stating that the amount of Rs. 11,73,085 shown in the balance-sheet of Centre for Science and Technological Studies as on March 31, 1996, was given by the centre as a grant and adjusted in the financial year 1996-97 and as such no amount is outstanding as advance on March 31, 1997. Along with the said communication, the petitioner had filed an affidavit also to the said effect, THE second respondent without affording any further opportunity issued exhibit P-4 certificate under Sections 222 and 223 of the Act directing the petitioner to pay the sum of Rs. 11,73,085. According to the authority, the said sum has become due from the petitioner on November 10, 1997, in the status of individual. It is against these orders, the petitioner has come up in writ petition.
(2.) A statement is filed on behalf of the respondents. It is stated, that from the statement of accounts for the years 1991-92 to 1995-96 submitted by the Centre for Science and Technological Studies along with the returns claiming exemption from payment of income-tax under Sections 11 to 13 of the Income-tax Act, 1961, it was noticed that the trustee had given periodical advances of Rs. 11,73,085 up to March 31, 1995, apart from grants. It is further stated that since the assessee had violated the provisions of Sections 13(1)(c) and 13(2)(a) of the Act the claim for exemption was rejected and a sum of Rs. 12,59,083 by way of income-tax and interest was raised for the said years. It is also stated that the petitioner is the president of the said assessee. It is also stated that the contention of the petitioner in exhibit P-3 objection was not accepted and he was treated as an assessee in default as per provisions of Section 226(3)(x) of the Act and a recovery certificate was accordingly issued. It is further stated that the petitioner's request for reconsideration of the same was also rejected on November 26, 1997. It is stated that in the said communication it was specifically pointed out that the advance given to the school of engineering has been accounted under the head loans and advances on the liabilities side of the balance-sheet filed by the school of engineering as per the balance-sheet as on March 31, 1995.