UNION OF INDIA Vs. TULSIDAS BHIMJI

JUDGEMENT

(1.) This rule is directed against an order of the Commissioner, Presidency Division, dated December 29, 1971, whereby the order of the Tax Recovery Officer, Calcutta and 24-Parganas, dated August 28, 1971, was set aside with certain directions.

(2.) The facts as stated in the petition in short are as follows : Bhimji Nathubhai was at the material time assessed in the jurisdiction of the Income-tax Officer, "C" Ward, Dist. IV(3), Calcutta. The assessee was a partner of the firm, Nathubhai Odhavji & Co. and New Bihar Biri Leaves Co., Calcutta. On August 21, 1965, Bhimji Nathubhai died leaving his widow, Bai Muktaben Bhimji, and his sons as his heirs and legal representatives. Bai Muktaben Bhimji as the legal heir of the deceased made a voluntary disclosure on January 29, 1966, declaring the income of the deceased at Rs. 3,09,500. The said disclosure was accepted by the Commissioner of Income-tax, West Bengal III, and the acceptance was communicated to the Income-tax Officer, " C " Ward, District IV(3), Calcutta, on July 11, 1966. The Income-tax Officer issued a demand notice for Rs. 1,89,292 in the name of Bai Muktaben Bhimji as the legal representative of the deceased and on October 27, 1966, the assessee paid a sum of Rs. 18,929.

(3.) As the balance remained unpaid, the Income-tax Officer issued a certificate under Section 222(1) of the Income-tax Act, 1961, on March 21, 1968, in the name of Bai Muktaben Bhimji for Rs. 1,98,136 which included Rs. 27,772 as interest under Section 220(2) of the Act. Thereafter, a sum of Rs. 20,000 was paid leaving a balance of Rs. 1,78,136 due. The Income-tax Officer, thereafter, communicated to the Tax Recovery Officer the names of the opposite parties as the legal heirs and representatives of the deceased assessee, informing that about Rs. 4 lakhs was due to the deceased from the firms mentioned above. The Tax Recovery Officer was further requested to proceed with the recovery of arrear taxes on the basis of the information furnished.