Law:

Section:

Section 222, read with section 192 of the Income-tax Act, 1961 [Corresponding to section 46(2) read with section 18 of the Indian Income-tax Act, 1922] - Collection and recovery of tax - Certificate proceedings - Assessment years 1946-47 and 1947-48 - Whether determination of amount of income-tax is a matter concerning revenue and once an assessment has been made, High Court can not exercise jurisdiction questioning validity of assessment made under Act - Held, yes - Whether if assessment is determined by ITO, jurisdiction of Civil Court to entertain suit and of any other Court to entertain any other proceedings is excluded, a proper machinery having been provided under Act, legality or illegality of assessment is to be determined by setting in motion machinery provided by income-tax Act and not through any other Tribunal - Held, yes FACTS This assessee company had filed its return of income for the assessment year 1948-49. As the returns for the assessments year 1946-47 and 1947-48 had not been made under section 21, assessments were made by the ITO at Rs. 50,000 per year for each of the two years on the basis of the return for the year 1948-49. It was stated that the company had asserted that for the assessment years 1946-47 and 1947-48 returns had been filed under section 21 at Lahore, but on enquiry from there the ITO had found that no such return had been made. Accordingly the ITO issued demand notice and took action under section 46 and issued a certificate to the Collector for the recovery of tax. It was also claimed by the ITO that there was other liability of the company for income-tax with regard to which the Government reserved their right to proceed in accordance with law. On 25-3-1949, the Collector attached certain properties belonging to the company and fixed 6-4-1949, as the date for their sale by public auction. One 'J', who was the general manager of the company and who held a general power-of-attorney from the company, requested the Commissioner to withhold the sale and other proceedings, promising to pay the arrears of tax. The Commissioner acceded to this request and the sale was postponed for a month, and other proceedings were stayed. On…

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