LAWS(CAL)-1991-6-23

SARVAMANGALA PROPERTIES Vs. INCOME TAX OFFICER

Decided On June 19, 1991
SARVAMANGALA PROPERTIES Appellant
V/S
INCOME TAX OFFICER Respondents

JUDGEMENT

(1.) THE assessment year in question is 1970-71. The subject-matter of challenge is a notice under s. 148 of the IT Act, 1961 ('the Act') in respect of the year in question. The said notice impugned in this proceeding is dt. 30th March, 1987.

(2.) THE facts briefly stated are : In 1956 the petitioner purchased premises No. 5, Clive Row, Calcutta (the said premises) at a public auction conducted by the Certificate Officer under the provisions of the Bengal Public Demands Recovery Act, 1913. The petitioner purchased the premises subject to prior encumbrances for a total price of Rs. 2,27,250. The auction under the Bengal Public Demands Recovery Act was for recovery of sales tax and the petitioner took possession of the premises. The next year a suit was filed in this Court being Suit No. 689 of 1957 against the original owner of the premises as well as the petitioner for recovery of sum of Rs. 35,34,063-11-6 by the Hongkong and Shanghai Banking Corporation (the bank) on the ground that the premises had been mortgaged to the bank by the original owner.

(3.) IN the meantime a series of notices under S. 148 issued to the petitioner. These notices have been separately challenged in different proceedings as noted below :