Law:

Section:

JUDGMENT Govindan Nair, CJ.-The question is whether the partners of a registered firm are liable to be proceeded against for recovery of tax assessed on the firm as such under the Income-tax Act, 1961 (for short "the Act"), pursuant to a certificate issued to the Tax Recovery Officer as envisaged by section 222 of the Act. The learned judge before whom this question arose answered it in the negative, allowed the writ application and issued a direction not to enforce exhibits P-l and P-3 communications sent by the Tax Recovery Officer. In exhibit P-1 addressed to the partners it was stated that "a sum of Rs. 70,763 is outstanding as arrears towards income-tax, penalty, interest, etc., from the firm, M/s. Mutual Benefit Corporation, Calicut, of which you are a partner..........." The three partners who are respondents in this writ appeal protested by exhibit P-2 and contended that the arrears of income-tax due from the firm, M/s. Mutual Benefit Corporation, cannot be recovered from the partners. The rep2y to exhibit P-2 is in exhibit P-3 and it was stated therein: "............As per the provisions of the Partnership Act, the partners are jointly and severally liable to the dues of the firm. This position in law is not in any way affected by the Income-tax Act, 1961, and, therefore, your contention that the arrears on account of income-tax dues of the firm can only be recovered from the firm is not acceptable..........." The argument before us on behalf of the revenue also proceeded on the basis of the proposition stated in exhibit P-3. Counsel contended that section 2(23) of the Act incorporated the meanings attributable to the expressions "partnership", "firm" and "partner" stated in section 4 of the Indian Partnership Act for the purpose of the Act. So it was submitted that section 25 of the Partnership Act which we shall extract immediately must be taken to be a part of the Act. "25. Every partner is liable, jointly with all the other partners and also severally, for all acts of the firm done while he is a partner." Counsel contended that the assessment order on the firm passed in accordance with the provisions of section 182(1) of the Act, when that order is…

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