Law: Income Tax Act, 1961

Section: 156

Income-tax---Recovery of tax---Attachment---Tax Recovery Officer has power to attach only immovable properties of defaulter and not an assessee---An assessee becomes a defaulter only when his name is mentioned in the certificate drawn up by Tax Recovery Officer and fails to pay tax in demand notice issued within prescribed period of service of notice---Properties exclusively belonging to petitioner attached for income-tax dues of her husband--­Petitioner not assessee in default---Recovery proceedings invalid---Indian Income Tax Act, 1961, Ss. 156, 222 & Sched., II, R.48. The Tax Recovery Officer attached the properties of the petitioner for the income-tax dues of her husband and informed the petitioner that the attached property was not to be transferred or dealt with otherwise. The Tax Recovery Officer also informed the husband of the petitioner that he was proposing to sell the attached property in realisation of the income-tax arrears due from him. The petitioner informed the Tax Recovery Officer that the property attached belonged to her exclusively and that her husband had no connection whatsoever with her property and made a prayer for withdrawal of the attachment. However, the Tax Recovery Officer proceeded with the sale of the property. On a writ petition: Held, allowing the writ petition, that rule 48 of Schedule II to the Income Tax Act, 1961, authorises the Tax Recovery Officer to attach the immovable property of a defaulter and not of an assessee. An assessee becomes a defaulter only when his name is mentioned in the certificate drawn up by the Tax Recovery Officer under section 222 of the Act in respect of any assets referred to in that section. An assessee can be said to be in default, if he does not make the payment of tax specified in the demand notice issued under section 156 within a period of 30 days of the service of the notice. In the instant case, no demand notice was issued to the petitioner by the Tax Recovery Officer as required under section 156. In the absence of such a demand notice, the petitioner could not be said to be a defaulter within the meaning of rule 48 of the Schedule II to the Act. Moreover, the attachment of the…

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