NARESH B CHHEDA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) RULE. With the consent of the parties made returnable forthwith and heard.

(2.) BY the above petition filed under Article 226 of the Constitution of India, the Petitioner which is a Hindu Undivided Family challenges the debit of Rs.63,59,240/-from the account of the Petitioner for the liability of Naresh B. Chheda who is the Karta of the Hindu Undivided Family. The Petitioner also prays that the Respondent No.1 be directed to re-credit the said amount in the account of the Petitioner.

(3.) WE have heard the Learned Senior Counsel Mr. Pardiwala for the Petitioner and the Learned Counsel Shri Vimal Gupta for the Respondent No.1. The short question which arisen in the above Petition is whether the account of the HUF i.e. Petitioner could be debited for the tax liability incurred by Naresh Chheda, in his individual capacity. It is an undisputed position that the said Naresh Chheda is the Karta and the HUF, is constituted of his Wife, Son and Daughter, who are the other members. We are also informed at the bar that the daughter is a minor. The said Naresh Chheda a constituent of the HUF would, therefore, have an undivided share in the amount lying in the bank account of the HUF. The Respondent No.1, therefore, would not be entitled to attach and appropriate entire amount which was in the account of the HUF for the liabilities of the said Naresh Chheda as an individual, it can only attach and appropriate the amount in credit in the bank account of the HUF only to the extent falling to the share of the said Naresh Chheda. The said legal position was also not disputed by the Learned Counsel appearing for the parties. The Learned Senior Counsel for the Petitioner, Shri Pardiwala, during the course of the hearing of the above Petition, upon taking instructions, agreed to intimate the amount falling to the share of the said Naresh Chheda in the bank account of the HUF, so that the amount excluding the amount falling to the share of Naresh Chheda, could be returned by the Income Tax Department to the Bank so as to credit the same in the HUF account from which the amount was withdrawn by the Income Tax Department. The Learned Senior Counsel fairly submitted that the same would be done by the Petitioner within the time that will be stipulated by this Court.