Law:

Section:

Section 222 of the Income-tax Act, 1961 [Corresponding to section 46(2) of the Indian Income-tax Act, 1922], read with section 60 of the Code of Civil Procedure, 1908 - Collection and recovery of tax - Certificate proceedings - Assessment years 1945-46 to 1947-48 - Certain demand of income-tax was raised on making assessment on assessee's father on estimate basis as there was no proper accounts - Certificate under section 46(2) was issued to Collector for recovery of demand - Appellants, sons of assessee filed a suit for a declaration that properties belonging to joint family consisting of appellants and their father were not liable to be proceeded against for realization of income-tax assessed on their father in so far as it related to their interest in said properties - Whether there was no element of moral turpitude on part of father which was origin of debt and tax assessed on father on estimate basis income could not be said to be avyavaharika debt - Held, yes - Whether, therefore, appellants could not escape their liability to discharge debt incurred by father, that is, arrears of income-tax - Held, yes FACTS Assessment was made on the father of the appellants raising certain demand of income-tax. A certificate under section 46(2) was issued to the collector for recovery. The appellants filed a suit for a declaration that properties, belonging to the joint family consisting of appellants and their father were not liable to be proceeded against for realisation of income-tax assessed on their father in so far as it related to their interest in the said properties. They alleged in the plaint, inter alia, that the family was carrying on an ancestral business in textiles, that the father started and conducted several new businesses which were speculative in character, including the import and export in several commodities infringing the control orders in force at the time, and that he never bestowed any control over the affairs of the business nor maintained proper accounts. They submitted that the levy of assessment could not in law affect their interest in the joint family properties as the assessment on the father was made on an estimate basis because…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492