Law: Income Tax Act, 1922

Section: 29,45

Law: Income Tax Ordinance, 1979

Section: 85

Income-tax Act, 1922 -- Sections 29, 45 -- Non-payment of tax -- Assessee obtained loan from the bank -- Hypothecated the property -- Attachment of receivable bills, security, etc., from the M.E.S. Department by the Collector -- Bank's claim of prior claim -- Effect of -- Power-of-attorney -- Acted in excess of authority -- Scope -- Issue of demand notice becomes debt due to Government -- Attachment or sale for Government debt would not affect a mortagage created prior to attachment or sale -- Hypothecation -- Hypothecation of share of money in assets of firm -- Lawful -- Power-of-attorney -- Act under, challenged as being in excess of authority conferred -- Proof -- Muhammadan Law -- Contract by widow -- Not binding on minors -- Corresponding Sections: Income-tax Ordinance, 1979 -- Section 85 -- JUDGMENT (The judgment was delivered by AKBAR, J.)-Defendant No. 2, Federation of Pakistan (hereinafter refered to as Government)., is the appellant. The suit out of which this appeal arises was brought by Pioneer Bank, Ltd. (hereinafter referred to as the Bank) under the following circumstances:- One Saleh Muhammad carried on business of a contractor under the name and style of Messrs. Saleh Muhammad & Co. at No.2, English Road, Dacca (hereinafter referred to as the Firm). On his death in June 1944, his son, Yar Muhammad (defendant No. 4), widow Rahima Khatun (defendant No. 5), widow Pari Banu Bibi (defendant No.6) and daughters Sakina Khatun (defendant No. 7) and minor Rashida Khatun (defendant No. 8) inherited the said business. On the 19th July 1944, Rahima Khatun, Sakina Khatun, and Pari Banu Bibi for self and for her minor daughter Rashida Khatun executed a general power-of-attorney in favour of Yar Muhammad empowering him to do various works in connection with the contract business. As the firm needed money for executing certain military contracts, Yar Muhammad made an arrangement with the plaintiff-Bank by which the Bank was to advance him to the maximum limit of Rs. 60,000 on overdraft account on the security of all outstanding bills and the amounts payable to the firm by the M.E.S. Department at Dacca, Chittagong and Comilla. In pursuance of the aforesaid…

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