Law:

Section:

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 - Assessment year 1947-48 - ITO forwarded to Collector a certificate under section 46(2) of 1922 Act for realisation of arrears of tax from respondent/assessee - Collector initiated necessary proceedings - Pending these proceedings, ITO issued notice under section 46(5A) of 1922 Act to company in which assessee was employed and directed company to stop payments to assessee - On application filed by assessee to allow him to pay amount due by monthly instalments, Certificate Officer allowed said application without hearing objections of ITO - Assessee filed writ petition before High Court to direct ITO either to withdraw or amend his notice so as to make it consistent with order for payment by instalments - Single Judge allowed petition - Whether since Single Judge had overlooked vital point in case, namely, that instalment order was made without giving hearing to ITO, ITO could not be required or modify notice under section 46(5A) of 1922 Act or to accept payment of arrears due from assessee by instalments - Held, yes - Whether, therefore, order of Single Judge was to be set aside - Held, yes FACTS The respondent/petitioner was a foreign citizen. He was the manager and director of a limited company and got a certain amount of salary and commission. He was assessed to income-tax and super-tax for the accounting year 1946-47 (assessment year 1947-48) on a total income of rupees six lacs and odd. As full demand was not met, the ITO under section 46(2) of the 1922 Act forwarded to the Collector a certificate specifying the amount of arrears which were due from the petitioner. The Collector proceeded to recover the amount, and certificate proceedings under the Public Demands Recovery Act were taken. Pending these proceedings, the ITO issued notice under section 46(5A) of the 1922 Act to the company and directed company to stop payments to the petitioner. The petitioner made an application to the Certificate Officer for allowing the petitioner to pay the amount due by monthly instalments. The…

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