NOORUDIN Vs. TAX RECOVERY OFFICER

JUDGEMENT

(1.) RULE 68B in Schedule II to the Income-tax Act, 1961, introduced with effect from June 1, 1992, is imperative, and specifies the exact period available to the Revenue, to hold the sale of property attached for recovery of arrears of tax, interest, fine/penalty or any other sum ; the period by which it may be extended ; the period which is to be excluded white computing the period specified in Sub-rule (1), and also sets out the consequence of not holding the sale within the period allowed by the rule.

(2.) THE consequence is that whatever might have happened or might have been done by an assessee or by the Revenue, if the sale is not held within the period specified in Rule 68B, after excluding the period specified in Rule 68B(2), the sale cannot be held after the expiry of that period of limitation specified therein and any order of attachment that might have been issued shall be deemed to have been vacated.

(3.) THE factual matrix in which the aforementioned rules are required to be applied in this case is that a proclamation of sale was issued on February 2, 1996, in respect of valuable immovable property, which had belonged to the mother of the petitioner, who was a partner in a firm, Raja and Raja Beedi Factory. She died in 1984. THE property inherited by her son was sought to be sold under the proclamation issued 12 years after her death, on the basis of a certificate issued by the Income-tax Officer, on March 28, 1991, for recovery of the sum of Rs. 6,53,759. THE assessment years for which the tax was in arrears were not set out in the proclamation. It is, however, obvious that the amount must relate to a period prior to March 28, 1991. After this writ petition was entertained by this court, this court did not stay the sale, but had confined the stay to the confirmation of the sale. However, no sale has been held till date.