RASH BEHARI GHOSH Vs. UNION OF INDIA

JUDGEMENT

(1.) FOR the assessment year 1947-48, the petitioner was assessed, under the Read "capital Gains" on a sum of Rs. 35,300 - being the sale proceeds of premises No. 2 Sadananda Road. The tax assessed on the aforesaid sum was calculated at Rs. 2256/13/ -.

(2.) FOR realisation of the tax as assessed, certificate case No. 2819 I. T. of 1951-52 was started against the petitioner before the Certificate Officer, 24 Parganas, under the provisions of the Public Demands Recovery Act read with section 46 (2) of the Indian Income Tax Act.

(3.) THE petitioner filed a suit, being title suit No. 34 of 1955, in the First Court of the Subordinate Judge at Alipore, for a declaration that the assessment was illegal and also for a declaration that the certificate proceeding and the orders passed there under were inoperative and without jurisdiction and for an injunction restraining the opposite party herein from proceeding with the certificate. The suit succeeded to a limited extent. The learned Subordinate Judge declared that the certificate proceeding on the basis of the notice under section 7 of the Public Demands Recovery Act offended against the provisions of the Public Demands Recovery Act itself and could not be proceeded with as such. The other prayers made in the plaint were, however, refused.