JASWANT SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONER Jaswant Singh has impugned sale notice which is annexed to the petition as Annexure-B issued by the TRO (Home Tax), Ludhiana, on the Grounds :

(2.) BEFORE proceedings with the grounds on which the sale notice (Annexure 'B') has been impugned, it may be necessary to recapitulate a few circumstances alleged in the petition pertaining to the partnership concern. The petitioner has alleged that in the partnership concern known as Ashoka Oil Mill, Samrala, the petitioner had one-fourth share and respondent No. 3 had three-fourth share. The capital investment was also made in the same proportion by both the partners. Respondent No. 3 Dhanwant Singh retired form the partnership on 10th May, 1968 and thereafter the petitioner became the sole surviving partner and the partnership came to be dissolved a preliminary decree was passed by Sub-Judge 1st Class, Samrala on 24th Oct., 1970, but the final decree after the rendition of account had not so far been passed because respondent No. 3 Dhanwant Singh had left the country and settled down in Canada. Respondent No. 3 Dhanwant Singh had not produced original account books and instead produced forged account the books with the intention defrauding the State Revenue and also cheating the petitioner and on complaint by the petitioner, books of account were impound by the IT Authorities for investigation with respect to the alleged forgery and the necessary prosecution after the same was detected. Respondent No. 3 in order to escape the prosecution and with the active connivance of the Departmental staff, obviated Income-tax clearance certificate on or about 3rd Oct., 1970. The firm was originally assessed for 1966-67 and the Mill was attached for the recovery of Rs. 85,386 from Dhanwant Singh-respondent No. 3 and Rs. 26,326 from the firm vide order dt. 5th Oct, 1971, which order was ex parte. The appeal of the firm under s. 146 of the IT Act was accepted and the said attachment was consequently, quashed and the case was reopened for fresh assessment according to law. The ex parte assessment was set aside on 23rd Nov., 1971 by the ITO, Ludhiana, and the entire proceedings ceased to have any effect.

(3.) THE property in question was published to be sold on 28th March, 1972 under order of respondent No. 2, against which the petitioner filed Civil W.P. No. 1005 of 1972, which was rendered infructuous as the Department accepted the pleas of the petitioner and cancelled the attachment and promised to proceed according to law. The attachment was finally removed on 28th March, 1972.