KULDIP SINGH S Vs. TAHSILDAR AMRITSAR

JUDGEMENT

(1.) LACHHMAN Singh and his sons constituted a joint Hindu family and carried on business under the name and style of Saran Singh LACHHMAN Singh. LACHHMAN Singh died on the 7th of May, 1944, but the family business continued. The joint Hindu family firm was assessed to income-tax for the assessment year 1947-48. Afterwards proceedings were taken under Section 34 of the Indian Income-tax Act in 1955, and by order dated the 28th of March, 1956, the family firm was held liable to pay tax amounting to Rs. 1,11, 555/7/-. As the tax was not paid the Income-tax Officer sent a recovery certificate under Section 46(2) of the Income-tax Act for recovery of the amount from the joint family firm which in all these proceedings has been described as Saran Singh LACHHMAN Singh. This amount is to be recovered as arrears of land revenue. The Collector issued warrants of arrest of Kuldip Singh and Gulzar Singh, adult members of the family, under Section 69 of the Punjab Land Revenue Act. They filed objections to the warrants of arrest on the ground that they were not liable to arrest and detention as the tax was not their individual liability but was the liability of the joint Hindu family. These objections were, however, rejected by the Collector on the 24th of August, 1956. Kuldip Singh and Gulzar Singh have filed this petition challenging the validity of the order of arrest. In view of the importance of the question, the case was referred to a Division Bench and it has now come before us for decision.

(2.) THE question that requires determination in this case is whether the amount mentioned in a certificate sent under Section 46(2) of the Indian Income-tax Act for recovery of the amount due from the joint Hindu family as arrears of land revenue could be recovered from the individual coparcener by arrest and detention.

(3.) IT, therefore, follows that if the defaulter is a legal entity and not a natural person then the amount of duos under the Income-tax Act cannot be recovered as arrears of land revenue by arrest, detention or confinement in jail. When the defaulter is a Hindu undivided family the dues can be realised only by a mode other than the one prescribed in Section 67 (b) read with Section 69 of the Punjab Land Revenue Act. IT is of course open to the Collector to proceed to recover this amount by other modes prescribed in Section 67 of the Act.