KARSANBHAI GANDABHAI PATEL Vs. TAX RECOVERY OFFICER

JUDGEMENT

(1.) Petitioners have challenged an order dated 8th November 1995 passed by the Tax Recovery Officer (TRO), Valsad under section 281 of the Income Tax Act 1961 ('the Act' for short). Facts are as under:

(2.) The petitioners purchased different units in a constructed building situated in Bilimora Nagarpalika known as Mazda Estate constructed by Mazda Estate and Finance Pvt. Ltd. ('Mazda' for short). The construction was completed in the year 1991 or 1992. The petitioners had booked their respective shops in the said building. Upon completion of the construction, the petitioners were put in possession of such shops in the year 1991-92. On 17th/18th May 1995, all the petitioners executed separate sale deeds with Mazda for purchase of respective units.

(3.) Mazda had defaulted in making payment of income tax dues to the extent of Rs.19.88 lacs arising out of various assessment orders. The case of Mazda was therefore referred to TRO, Mumbai for recovery.