Law:

Section:

Article 226 of the Constitution of India - Writ - Maintainability of - Two assessees, husband and wife, carried on business of money-lending - On 7-4-1971 certain pronotes and account books belonging to them were seized under section 132(5) -Consequently ITO issued notices to executants of those promissory notes under section 226(3)(x) with a view to collect their amounts and adjust them towards arrears of tax due - However, a number of promissory notes were taken back by assessee, leaving others with department as they were time barred - ITO thereupon finalised assessments of husband for assessment years 1971-72 to 1973-74 and of wife for assessment years 1966-67 to 1973-74 - On assessments becoming final, ITO issued demand notices to assessee - Whether in above circumstances it was not incumbent upon ITO to realise amounts in manner contemplated under section 226(3)(x) from executants of promissory notes and, therefore, writ petitions filed by assessees were liable to be dismissed - Held, yes Facts The two assessees, husband and wife, carried on the business of money-lending. On 7-4-1971, their business and residential premises were searched by the officials of the department, as a result of which certain pronotes and account books were seized. The assessee challenged the said seizure questioning the constitutionality of section 132(5) by a writ petition, which was dismissed by the Court. Thereafter, the assessees filed two suits in civil Court seeking a decree for damages and loss said to have been sustained by them as a result of wrongful retention of the promissory notes. However, the said suits were also dismissed. In the meantime, the revenue finalised the assessment of both the wife and husband and demand notices were issued to the husband in respect of the assessment years 1971-72 to 1973-74, and to the wife in respect of the assessment years 1966-67 to 1973-74. On writ petition, the assessees contended that when the income-tax officials consequent to the search they conducted on 7-4-1971 issued notices to the debtors of the promissory notes seized from their business and residential premises it was incumbent upon them to collect the amounts covered by…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492