Law:

Section:

Section 222 of the Income-tax Act, 1961 [Corresponding to section 46 of the Indian Income-tax Act, 1922] - Collection and recovery of tax - Certificate proceedings - Assessment year 1945-46 - In certificate proceedings instituted against 'K', Certificate Officer attached a house property for recovery of income-tax due from her and passed an order to sell said premises in auction - Plaintiffs, daughters-in-law of 'K', filed a suit challenging aforesaid order on ground that said property stood transferred to them by way of a deed of transfer - Plaintiffs, accordingly, sought declaration that they had acquired a valid title to disputed property and it was not liable to be sold for realisation of arrears of income-tax dues from 'K' - Trial Court however, dismissed suit - Whether in view of fact that 'K' had transferred property in favour of plaintiffs/appellants for an insignificant amount to be paid per month, it could be concluded that said deed was really a deed of gift - Held, yes - Whether, therefore, in view of section 128 of Transfer of Property Act, 1882, plaintiffs/appellants were in position of universal donees and were liable for all debts due by and liabilities of donor at time of gift to extent of properties comprised in deed - Held, yes - Whether, consequently, premises in question could be attached and sold for certificate debt of 'K' - Held, yes FACTS 'K' was mother-in-law of appellants plaintiffs in the instant case. A certificate was issued against 'K' for recovery of certain sums on account of arrears of income-tax and a house property was attached for realisation of income-tax in certificate proceedings. The certificate Officer disallowed the claim of plaintiffs that 'K' had transferred the property in their favour and passed an order that the property in question should be sold in auction. Thereupon, the plaintiffs filed a suit challenging the validity of above order and for a declaration that they had acquired a valid title to the disputed property and it was not liable to be sold for realisation of arrears of Income-tax dues from 'K'. The defendants on the other hand contended that the deed in question was a benami and a fraudulent document…

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