KETHMAL PAREKH Vs. TAX RECOVERY OFFICER

JUDGEMENT

(1.) THE petitioner and his father carried on business as partners under the name and style of " Kethmal Parekh and Co." THE firm commenced its business on April 16, 1961, and ceased to do business with effect from 13th November, 1963. THE Income-tax Officer made an order of assessment under which the firm became liable to pay tax for two successive years at Rs. 2,265 and Rs. 13,000. THE firm was treated as an unregistered one and assessment was made on that basis. THE petitioner's father died in 1964, It is averred by the petitioner that the deceased left no property. He also states that he could not pay arrears of tax because of the heavy loss sustained by the firm. It would appear that there was a levy of penalty under Section 221 to the tune of Rs. 1,750 and Rs. 9,000 for the two years in respect of which the default has occurred.

(2.) ON March 8, 1967, the Income-tax Officer, Kothagudem, the second respondent herein, forwarded certificate to the Tax Recovery Officer under Section 222 of the Income-tax Act, 1961 (which for the sake of brevity will be referred to as "the Act" hereafter). The amounts recoverable as per the certificate are Rs. 4,162.20 and Rs. 22,793.13. These amounts are inclusive of the interest that accrued due up to the issue of the certificate. The person named in the certificate is the firm of Kethmal Parekh and Co.

(3.) ON October 4, 1971, the petitioner applied to the Inspecting Assistant Commissioner of Income-tax, Hyderabad, asking for the settlement of the arrears at Rs. 8,000 and also for stay of the proceedings of arrest till the disposal of the petition. But, the Assistant Commissioner orally intimated to the petitioner that an earlier application in that behalf was already rejected.