Law:

Section:

Section 226, read with sections 222 to 225 and second Schedule, of the Income-tax Act, 1961 - Collection and recovery of tax - Other modes of recovery - Whether it is garnishee who is deemed to be assessee in default from whom tax can be recovered as arrear of tax due from him, but until provisions of sections 222 to 225 are resorted to against garnishee and a certificate is drawn against him, there is no scope of resorting to section 226(3) as against debtor of garnishee or attach debt payable by debtor of garnishee to latter without following provisions provided in section 222 to 225 read with provisions contained in Second Schedule - Held, yes - Whether when procedure for recovery uses expression 'defaulter' instead of 'assessee in default' and expression 'defaulter' has been defined to mean 'assessee mentioned in certificate', then a certificate issued against assessee cannot be treated to be certificate issued against deemed assessee in default until a certificate is issued under section 222 in default of garnishee in terms of clause (x) of section 226(3) deeming him an assessee in default - Held, yes - Whether jurisdiction of TRO under clause (vi) of section 226(3) is confined only to extent of discovery of any falsity in denial and ascertaining its genuineness and said clause does not confer any jurisdiction on TRO to determine merits of objection and sit in appeal to delineate entitlement of parties - Held, yes FACTS The assessee/appellant (SWCL) obtained a loan from VCVL. The said loan, reflected in the return of SWCL, was held to be a sham transaction and was assessed and charged to income-tax in the assessment of income of SWCL made by the income-tax authority. In the meanwhile, the VCVL filed a suit claiming to recover the said loan amount. This suit was decreed against the VCVL. While the VCVL was assessed in respect of its own income, it offered the decree obtained by it against the SWCL, for recovery of the income-tax payable by VCVL. After a certificate was drawn up against VCVL, the Tax Recovery Officer (TRO) through a notice under section 226(3) sought to recover the tax payable by VCVL, from the SWCL. SWCL filed series of litigations…

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