Law:

Section:

Section 222 of the Income-tax Act, 1961 - Collection and recovery of tax - Certificate proceedings - Whether once TRO is informed that matter is already subjudice in Civil Court, he should not take upon himself responsibility of deciding extent of interest of objector in attached property and should await decision of Civil Court - Held, yes - Whether where petitioner bank offered to file certified copies of certain documents to prove that attached properties were mortgaged with bank but TRO did not allow him to produce same and pronounced , procedure followed by TRO was violating of principle of natural justice and consequent order passed by him could not be upheld - Held, yes. FACTS The respondent firm opened cash credit accounts with the petitioner bank. The petitioner bank had agreed to made advances to the respondent. In order to secure the said cash credit accounts and some medium term loans, respondent mortgaged all the lands, structures, buildings, plant and machinery with the bank by way of equitable mortgage by depositing the title deeds. On 15-5-1968, the petitioner-bank filed a suit for the recovery of principle amount and interest thereon against respondents in the Civil Court on the basis of the said mortgage and prayed for a preliminary decree in terms of Order xxxiv, rule 4, read with Order xxxiv, rule 2 of the Code of Civil Procedure, and some other relief's including a declaration that the said sum was due from the defendants jointly and severally to the plaintiff as on 15-5-1968. Against respondent an assessment order was made which remained unsatisfied. The TRO issued an order of attachment of immovable property of the respondent under rule 48 of the Second Schedule to the Act. The petitioner-bank filed objections to the aforesaid attachment stating that the attached properties were under mortgage with the bank and either the attachment should be vacated or the attached properties should be sold without prejudice to the rights and contentions of the bank and that sale should be made subject to the first charge of the bank to the extent of its dues from respondents. It was also mentioned that the said respondents had been restrained by the…

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