V VAIDYANATHAN Vs. UNION SAW MILLS

JUDGEMENT

(1.) THE first appellant (hereinafter referred to as the appellant) was assessed to incometax for the year 1941-42 and the tax payable by him was determined to be Rs. 13, 661-3-0. After deducting certain payments made by the appellant and allowance for a refund, a revised assessment order was made which resulted in fixing the appellant's liability at Rs. 9, 244.69.

(2.) THE appellant sought for extension of time to pay the amount, and time was being granted. This was principally due to the reason that the appellant claimed that he was assessed to tax in Burma as well. In 1951, the department issued certificate to the Collector for realising the amount due under section 46(2) of the Income-tax Act. Thereupon, the appellant moved the High Court by way of writ and the appellant partly succeeded therein, but his liability to pay the amount stated was not affected by that writ proceeding. Finally, the Union of India, represented by the Commissioner of Income-tax, laid the suit. The defences of the appellant in so far as they survive for consideration in this second appeal were that the suit is barred by section 67 of the Indian Income-tax Act and that the suit is also barred by limitation.

(3.) THE defendant-appellant again presses in this second appeal the two contentions referred to Section 67 of the Income Tax Act, 1922, bars the jurisdiction of the civil court in so far as any relief sought in the civil court seeks to set aside or modify any assessment made under the Act. The plain language of the section does not admit of the construction placed upon it by the learned counsel, Mr. K. Srinivasan, that it bars a suit for recovery of the amount due upon an assessment. As the counsel for the department rightly points out, what the action before the civil court seeks to do is to enforce the assessment, not to set aside or modify it. Mr. Srinivasan purported to urge that the expression "assessment" is capable of a wide connotation and it would include recovery as wellIt is now necessary to refer very briefly to the various provisions of the Act. Section 3 of the Income-tax Act is the charging section and it makes liable every person in respect of an income to pay income-tax at the rate or rates which the Central Act specifies. What is taxable income is determined according to other provisions, which provide for exemptions and allowances under various heads. A return of the income by the assessee is stipulated by other provisions, and what is called an assessment is made by the Income-tax Officer, who has firstly to assess the total income of the assessee and next to determine the sum payable by him on the basis of such income. Yet other provisions deal with cases where a return is not submitted by the assessee. The provisions of the Act deal with a variety of situations and a multitude of legal persons in respect of whom an assessment can be made.