UNION OF INDIA (UOI) Vs. NAND LAL, ETC.

JUDGEMENT

(1.) THIS is an appeal by the Union of India against the decree of the trial Court, whereby it has been held that the Plaintiff -Respondents are proved to be owners in possession of the properties in dispute and the same are, therefore, not liable to attachment and sale in realisation of the dues of the Appellant.

(2.) THE Income -Tax Officer, Amritsar, passed assessment orders, Exhibits D. 1, D. 2 and D. 3, for the assessment years 1949 -50, 1948 -49 and 1947 -48, on 29th June, 1951, and in pursuance thereof served demand notices on M/s. Moti Ram, Madan Lal, Katra Ahluwalia, Amritsar, through Moti Ram. The amount not having been realised, the demand was sent under Section 46 of the Income -Tax Act to the Collector, Amritsar, for realisation. The suit property which consists of two shops, Nos. 1016 -17/XI -13, and 177/II -I, situate at Bazar Ghantaghar and Guru Bazar, Amritsar, respectively, were sought to be attached and sold for the recovery of the amount of income -tax. The Plaintiff -Respondents, Nand Lal and others, sons of Moti Ram preferred objections under Order 21, Rule 58, Code of Civil Procedure Code, it being alleged that these two shops were owned and possessed by them and were not liable to attachment and sale for realisation of the amount claimed to be due from Moti Ram, their father. The objections were disallowed on 15th July, 1959. Hence the suit under Order 21, Rule 63, out of which the present appeal has arisen.

(3.) THE trial Court found issue No. 1 in favour of the Plaintiffs and issue No. 2 against the Defendant -Appellant. It is held under issues Nos. 3 and 4 that a valid notice under Section 80 of the Code had been served though no such notice was necessary under the law.