Law:

Section:

Section 143 of the income-tax act, 1961-Assessment-Assessee, since deceased, had been convicted and sentenced for misappropriating government money-Assessee's properties were attached under criminal law amendment ordinance, 1944, for realisation of liability on account of misappropriation-Court declared that ITO could proceed to release tax due from assessee from said properties only after said attachment was withdrawn-Whether department could assess income received from attached properties in the hands of receiver, although it could not proceed to recover tax due from properties attached-Held, yes -Whether department could refund tax already realised from receiver of said properties -Held, on facts, no. Facts Large properties belonging to the assessee, since deceased, were attached under the provisions of the Criminal Law Amendment Ordinance, 1944, for the purpose of realising a sum of Rs. 75 lakhs on account of liability of the assessee, who had been convicted and sentenced for misappropriating a large sum of Government money in the discharge of his official duties. The District Judge became custodia legis of the said properties and a receiver had been appointed for realising the income out of the said property for liquidating the impugned amount of Rs. 75 lakhs. In 1962, the Commissioner wanted to realise income-tax out of the assessee's estate, but the then District Judge by his order dated 3-8-1962 held (i ) that under section 13(3) of the aforesaid ordinance, the amount found in the final should first be forfeited to the Government and after the recovery of the dues of the assessee, including the fine imposed upon him, the order of attachment in respect of the said properties should be forthwith withdrawn and (ii ) that thereafter, the ITO could proceed against the said properties. The Income-tax authorities, however, again tried to realise the income-tax out of the said properties and it was decided in Civil Rule No. 871 of 1979 that in view of the order dated 3-8-1962, passed by the then District Judge, which was not set aside by any competent court, the successor-in-office could not ignore the same and he was bound to give effect to the said order and…

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