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Section 226 of the Income-tax Act, 1961 [Corresponding to section 46(5A) of the Indian Income-tax Act 1922] - Collection and recovery of tax - Other modes of recovery - ITO issued a notice to respondent/assessee under section 46(5A) of Act 1922, attaching remuneration payable by it to 'B' who was a cine-artist and requested it to credit to government account all amount that was due and became payable to "B" - Latter ITO found that even after issue of that notice respondent had made a payment of Rs. 20000 to 'B' under an agreement - On basis of that finding ITO took view that said amount was paid by respondent in violation of earlier notice issued under section 46(5A) of Act 1922 and directed respondent to make that payment to department - Whether expression 'may become due' or may 'subsequently hold money' appearing in section 46(5A) of Act 1922 suggest a subsisting relationship between person served with notice and assessee - Held, yes - Whether, therefore, High Court was right in holding that what was contemplated in section 46(5A) of Act 1922 was substance of similar relationship between garnishee and assessee, and payment made by assessee did not contravene notice issued under section 46(5A) of Act 1922 - Held, yes FACTS One cine-artist 'B' was apparently in arrears of income-tax. The Additional ITO sent a latter dated 18-6-1959 enclosing a notice under section 46(5A), of the Act 1922 attaching the remuneration payable by the respondent/assessee to 'B' and requesting it to credit to the Government account all amount that was and will become payable to him. The respondent replied to that notice that it had not engaged 'B' for acting in its production. Hence, there was no contract with the said 'B' and consequently it was unable to comply with his request. On 22-3-1961, another communication was sent enclosing a notice under section 46(5A) of the Act 1922. The notice was in the same form except that the sum to be recovered had increased. The respondent in response to the second notice enclosed a copy of the contract with 'B'. The contract showed that there was an agreement between 'B' and the respondent, signed on 28-3-1960, whereby 'B' agreed to a role for a…

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