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 years 1943-44 to 1945-46 - Plaintiff-respondent was one of partners of unregistered firm-ITO assessed firm for relevant assessment years and served a notice of demand under section 29 of 1922 Act - As taxes were not paid, ITO issued certificate under section 46(2) of 1922 Act certifying that taxes remained unpaid - Certificate officer filed certificates under Public Demand Recovery Act in name of firm which by that time had been dissolved - Thereupon, some moveable properties belonging to plaintiff-respondent were attached - Whether liability of plaintiff respondent to pay arrears of income-tax being same as liability of firm, certificate issued by Certificate Officer could be executed against him after addition of his name as certificate debtor and after service of notice upon him under section 7 of Public Demand Recovery Act - Held, yes - Whether until and unless that was done, certificates could not be executed against plaintiff respondent - Held, yes FACTS The plaintiff-respondent was one of the partners of unregistered firm. The ITO assessed the firm for relevant assessment years and a notice of demand under section 29 of 1922 Act was served upon the assessee-firm. When taxes were not paid, action was taken by the ITO under section 46(2) of 1922 Act, who certified that the taxes mentioned above were not paid. On receipt of the said certificate, the Certificate Officer filed certificate under section 4 of the Public Demands Recovery Act in the name of firm which by then had been dissolved. Thereupon the Public Demand - Recovery Act, notices were issued under section 7. However, the taxes were not paid. Thereupon some movable properties belonging to the plaintiff (partner in firm) were attached. Against said order, the plaintiff instituted a suit before the Trial Court. The Trial Court made a declaration that the certificates in question were invalid and inoperative and not binding on plaintiff, consequently, the attachment of properties of plaintiff was also declared to be void. On…

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