K M ADAM Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner, is a dealer in skins. He was assessed to income-tax for THE years 1948-49 to 1953-54. The quantum of THE tax levied in THEse assessments was disputed by THE petitioner-assessee, but that is not material for THE present petition. What, however, is of relevance is that as a result of THEse assessments a sum of over Rs. 3 lakhs found due from THE petitioner as arrears of income-tax.

(2.) THE petitioner had for purpose of his business opened an overdraft account with Indian Bank Ltd., for which he had pledged with them his stock of hides and skins. THE limit set to the overdraft by the bank was at Rs. 1,37,500. On the date relevant to the present petition the assessee had drawn on this account a sum of Rs. 1,31,301-2-1 and this sum was shown in the books of the bank as debit to his account. While so, the Additional Income-tax Officer, Second Circle, Madras, who is the respondent in this petition, served a notice on 19th November, 1955, on the Indian Bank under section 46(5A) of the Indian Income-tax Act. In view of the Points raised during argument it is necessary to set out the terms of this notice :

(3.) THE necessary challan for depositing the money to the credit of Government in the Reserve Bank of India will be supplied immediately on hearing from you.