Law:

Section:

Section 222 of the Income-tax Act, 1961 (Corresponding to section 46(2) of the Indian Income-tax Act, 1922), read with the Madras City Land revenue Act, 1851 and the Madras Act II of 1864 - Collection and recovery of tax - Certificate proceedings - Assessment year 1949-50 - Whether a certificate issued under section 46(2) of 1922 Act indicating as arrears a part only of such arrears, is not invalid - Held, yes - Whether mere fact that notice of demand issued by Collector failed to mention any particular enactment, notice could not be regarded as invalid on that ground - Held, yes FACTS On completion of assessment for the assessment year 1949-50, a certificate under section 46(2) of the 1922 Act was issued for collection of tax arrears. The demand notice was served on the petitioner-assessee. The petitioner claimed that the arrears so mentioned in the demand were not in accordance with the assessment order and that the certificate did not, therefore, specify the correct amount of arrears. The petitioner's contention, accordingly, was that the certificate issued indicating therein an amount different from what was the correct amount of arrears was under the law invalid and the demand notice issued on foot of such certificate would be equally invalid. A further ground had been taken that Act 11 of 1864 not being applicable to the city of Madras, the demand purporting to be issued under that Act and the invocation of the powers under that Act were illegal. HELD A certificate issued under section 46(2), of the 1922 Act indicating as the arrears a part only of such arrears, is not invalid. Under section 46(2) on the issue of a certificate the Collector is authorized to recover the amount specified in the certificate as if it were an arrears of land revenue. The Collector derives his jurisdiction from the certificate. His authority to recover any amount as arrear of land revenue was governed by different enactments, by Act II of 1864 in areas outside the city of Madras, and by Act XII of 1851 in the city of Madras. Obviously, had the notice of demand issued by the Collector failed to mention any particular enactment, the notice could not be regarded as invalid on that…

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