BANSAL AND CO Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS is a writ petition under article 226 of the Constitution by Messrs. Bansal Co., a registered firm carrying on business of timber at Agra, and is directed against the proceedings taken under the provisions of section 226 read with sections 222 to 224 of the Income-tax Act of 1961 (hereinafter referred to as the Act). The relief claimed is for a declaration that the proceedings for recovery of tax are illegal and for the quashing of the certificate of recovery and the warrant of attachment.

(2.) THE facts leading up to the petition are somewhat disputed but the facts which can be said to be admitted are these :

(3.) WHERE a person to whom a notice under this sub-section is sent objects to it by a statement on oath that the sum demanded or any part thereof is not due to the assessee or that he does not hold any money for or on account of the assessee, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the Income-tax Officer to the extent of the assessees liability for any sum due under this Act, whichever is less.