PRAKASH CHAND LUNIA Vs. TAX RECOVERY OFFICER

JUDGEMENT

(1.) THE petitioner has filed the present writ petition as a karta of the Hindu undivided family, i.e., Hindu undivided family against the certificate issued by the Tax Recovery Officer under Section 222 of the Income-tax Act, 1961. THE petitioner submits that for an individual liability of the petitioner, the property of the Hindu undivided family neither can be attached nor auctioned for recovery of the arrears of income-tax due from the petitioner, Prakash Chand Lunia, in his individual capacity. A copy of the notice has been attached as annexure A to the writ petition wherein it is mentioned that Prakash Chand Lunia (defaulter) had failed to pay the sum of Rs. 3,00,61,927 payable by him in respect of certificate No. 99/120 dated July 27, 1992, as forwarded by the Income-tax Officer, Ward-2, Ajmer, and the interest payable under Section 220(2) of the Income-tax Act, 1961, and, therefore, the Tax Recovery Officer had certified under Section 223(2) of the Act that the amount mentioned above is to be recovered from the said Prakash Chand Lunia. THE notice contained the specification of the property being house No. 10/265 situated at Niti Marg, Ajmer, belonging to the Hindu undivided family property and one shop situated in Naya Bazar. It is mentioned in annexure A that the notice is being issued under the said provisions of the Income-tax Act for the said Hindu undivided family so far as the share of Prakash Chand Lunia is concerned. On receipt of the notice, annexure A, the Tax Recovery Officer, Ajmer, issued an order for sale of the property, the aforesaid details of which have been mentioned in annexure B, i.e., a bungalow at Niti Marg, Ajmer, and a shop of Hindu undivided family property at Naya Bazar, Ajmer, presently let out to N. K. Jewellers, and three others. Annexure B was issued on February 14, 1995. THE petitioner is also aggrieved against the issuance of notice annexure B. Annexure B stated that for the amount mentioned in certificate No. 99/120, the amount now to be recovered was Rs. 6,00,09,341 after adding the tax, etc. It was mentioned in annexure B that public auction would be held on March 27, 1995. Details of the property as mentioned in the auction notice were given as under :

(2.) PRAKASH Chand Lunia, Hindu undivided family's property building (shop) at Naya Bazar, Ajmer, presently let out to the following ; 1. N. K. Jewellers (ground floor), 2. Rishab Saree Centre (first floor), 3. Sh. Sunil Kumar (first floor) and 4. Shri Chiranjilal Pandya (second floor).

(3.) SIMILAR was the effect in State of Maharashtra v. Narayan Rao Sham Rao Deshmukh [1987] 163 ITR 31 (SC), wherein it was observed as under (page 36) :