BEHARI LAL BALDEO PRASAD Vs. COMMISSIONER

JUDGEMENT

(1.) THIS is an application under Article 226 of the Constitution praying that the Income Tax recovery certificate and the proceedings consequent thereto be all quashed.

(2.) THE petitioner Messrs Behari Lal Baldeo Prasad was a Hindu undivided family carrying on business. It was assessed to income-tax for the years 1952-53 and 1953-54 and a tax demand of Rs. 14,495/- was due from this firm. For the assessment years 1949-50, 1950-51 and 1951-52 an amount of Rs. 19,200/- was due from this firm by way of penalty. Thus a demand of Rs. 33,695/- had to be paid by this firm to the Income-tax Department, In 1956 differences between the members of the family led to a stoppage of business. A Partition Suit (No. 13 of 1956) was instituted in the Court of the Civil Judge, Orai. THE trial court appointed a Receiver over the family properties.

(3.) IN 1963 certain properties belonging to the petitioner were put up for sale in proceedings for recovery of the tax demand. On 12-11-1963 a property, which the learned counsel for the petitioner identified as a 'shop', was sold for Rs. 7,000 in favour of Sri Ram Nath Gupta, the fifth respondent. The next day, i.e., on 13-11-1963 two other properties were sold in favour of the sixth respondent, Sri Ram Swaroop Gupta, in separate lots, one was a bank goclown which was sold for Rs. 15,000 and the other is known as Vijai Tila and tin's was sold for Rs. 13,100.