GADADHAR DEY Vs. TAX RECOVERY OFFICER

JUDGEMENT

(1.) In this writ application, the petitioners have challenged the jurisdiction of the respondents to issue two notices both dated July 31, 1967, and to proceed against them under two notices both dated May 3, 1973, in the following circumstances : G. Dey & Company (Contractors) Private Ltd., hereinafter stated as the company, is the assessee under the Income-tax Act. The company is liable to pay the assessed tax of Rs. 690'82 and Rs. 5,212.88, respectively, for the assessment years 1952-53 and 1953-54. The petitioner No. 1 was a director and the petitioner No. 2 was a shareholder of the company for the above period. They have sold their shares in 1962 and the petitioner No. 1 has ceased to be a director of the company since then.

(2.) The impugned notices of July, 1967, were served on the petitioner No. 1 in the tax recovery proceedings started against the company. Thereafter, the impugned notices of February, 1973, were served on the company and the premises No. 3, Robinson Street, Calcutta, and 120/6, Masjid Bari Street, Calcutta, were attached for recovery of those taxes.

(3.) The petitioners' case is this : The company was dissolved on April 3, 1967, under the provisions of Sub-sections (1), (2), (3) and (5) of Section 560 of the Companies Act, 1956. The premises No. 3, Robinson Street, is a trust property of which the petitioner No. 2 is the sole trustee. The other property is in the possession of a receiver appointed by this court in Suit No. 4719 of 1952. These two properties are not liable to be attached and the petitioners have no liability to pay those taxes.