GURDEEP KAUR Vs. UNION OF INDIA

JUDGEMENT

(1.) The judgment will dispose of Letters Patent Appeals No. 96 and 97 of 1984, as common question of law and facts are involved in both these appeals. The brief factual matrix, in order to determine the questions raised in these appeals is not in dispute.

(2.) The facts in brevity are that vide order dated 27th August, 1968, the Income Tax Officer, issued a certificate under section 222 of the Income Tax Act, 1961 (hereinafter referred to as the Act), to the Tax Recovery Officer, Amritsar, for realising a sum of Rs. 1,35,969/- as income tax from defendant No. 1 Jagat Singh. In execution proceedings the property in dispute, viz, House No. 1797/V-13, Chowk Mahn Singh, Amritsar, was attached. Defendant No. 3 Smt. Sheela Wanti raised an objection that the aforesaid property belongs to her and consequently, the same cannot be attached. Vide order dated 16th September, 1970 the Tax Recovery Officer, accepted the claim of defendant No. 3.

(3.) The Union of India filed a suit for declaration challenging the order dated 16th September, 1970 of the Tax Recovery Officer, inter alia, contending that the property in dispute belonged to defendant No. 1 though it stands in the name of defendant No. 2. Defendant No. 2 had no income or any other source to purchase it. It was alleged that defendant No. 1 with an intention to defraud the Union of India, transferred the property in dispute in the name of defendant No. 3. It was categorically claimed that in fact the house in dispute belonged to defendant No. 1 and defendant No. 3 was only a Benamidar. Consequently, the property in dispute was rightly attached.