GAYATRI DEVI Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS writ petition is directed against Income-tax Department for restraining them from exercising their powers under section 226(3) of the Income-tax Act, 1961. According to the Department, a sum of Rs. 35,475 was due from the petitioner's mother by name Annapoorani by way of tax arrears payable by Amudham Enterprises in which she was a partner. It is not in dispute that under the dissolution deed of the partnership, the petitioner's mother had to discharge the income-tax liability. According to the Department, the petitioner herein who is the daughter of the assessee was liable to pay sum of Rs. 29,367.90 to her mother as she had utilised the amount belonging to the mother which was kept in fixed deposit with the Danalakshmi Bank Ltd., under account No. 39729/9/87 dated February 13, 1987. The Income-tax Department called upon the bank to pay the amount to the Department towards the arrears of tax payable to pay petitioner's mother. The bank sent a reply to the effect that the said amount was kept as security for the loan availed of by the petitioner which was under the vehicle loan account No. 10/87 for a sum of Rs. 75,000

(2.) THE Department sent a notice section 226(3) on February 23, 1988, the receipt of which is denied by the petitioner herein. THE petitioner has filed this writ petition when proceedings where initiated by the Department to recover the amount from the bank.