P P KANNIAH CHETTY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner was a partner in a firm of partnership called Messrs. Pattu Padmanabha Chetti and Sons. THE partnership firm was assessed to income-tax for the assessment years 1964-65 and 1965-66 and income-tax to the tune of Rs. 3, 43, 195 was due from the partnership firm. THE firm was an unregistered partnership and there is no dispute that the petitioner was a partner. This writ petition has been filed against the garnishee order issued by the Tax Recovery Officer to the Cement Marketing Company of India restraining them from paying any amount due to the petitioner from the company until further orders.THE learned counsel for the petitioner contended that the income-tax was due only from the partnership firm, that he had that therefore, the garnishee order issued against the Cement Marketing Company of India is illegal. THE petitioner does not dispute that the notice of demand was issued against the firm.

(2.) THE partnership being unregistered and the liability of the partners being joint and several, we are unable to accept the contention of the learned counsel for the petitioner that the notice issued against the partnership firm is not enough for proceeding against the garnishee. In fact, in Sahu Rajeshwar Nath v. Income-tax Officer the Supreme Court considered a similar question and held that where an unregistered firm is assessed to income-tax and a notice of demand is issued against that firm, it is not necessary to serve a separate notice of demand under section 29 of the Indian Income-tax Act, 1922, upon a partner of the firm of the tax assessed against the firm is sought to be recovered from the partner in proceedings under section 46(2). Further, the writ petition is filed only against the garnishee order issued against the Cement Marketing Company of India restraining them from paying any amount due to the petitioner. In order to issue a garnishee order, it is not necessary that the person from whom the tax is due in respect of which the garnishee order is issued be a defaulter within the meaning of section 46 of the Indian Income-tax Act, 1922, or the corresponding provision of the Income-tax Act, 1961In the the circumstances, there are no merits in this petition and it is liable to be dismissed. THE writ petition is accordingly dismissed and the rule nisi is discharged. THE respondents will be entitled to costs which we fix at Rs. 250.