JAGANNATH BAWRI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under Article 226 of the Constitution of India assailing the legality and validity of the direction issued by the Assistant Commissioner of Income-tax (Investigation Circle), Shillong, respondent No. 2, under Sub-section (3) of Section 226 of the Income-tax Act, 1961.

(2.) BY the impugned notice respondent No. 2 in exercise of power conferred under Section 226(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), in connection with income-tax proceedings in respect of Sri Binod Kumar Bawri, the Chief General Manager (Planning), Department of Telecommunications, Bawri Mansion, Dhankheti, Shillong, was directed to deposit the full rent payable in respect of premises to the account of the Assistant Commissioner of Income-tax with effect from the month of October, 1994, until further notice.

(3.) MS. Millie Hazarika, learned counsel appearing on behalf of the petitioners, strenuously submitted that since the petitioners are the lawful owners of the property in question, respondent No. 2 was not competent to issue notice in purported exercise of power under Section 226(3) of the Act. MS. Hazarika learned counsel also pointed out that the petitioners were assessed in respect of their income from the same property and the same income cannot be taxed in two hands. MS. Hazarika further submitted that the impugned proceeding was unjust, unfair and arbitrary so much so that before issuance of the impugned notice the owners of the property, i.e., the petitioners were not taken into confidence.