| Case ID |
027980db-9f80-4e59-9a2a-eb478aa47333 |
| Body |
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| Case Number |
WRIT PETITION No. 1406 OF 2004 |
| Decision Date |
Sep 20, 2005 |
| Hearing Date |
|
| Decision |
The Bombay High Court ruled that the sale of immovable property attached for tax recovery must occur within the limitation period set forth in rule 68B of the Income-tax Act, 1961. In this case, the Tax Recovery Officer's sale of the petitioner's attached flat on 30-03-2004 was beyond the prescribed limitation period, which commenced on 15-06-1994. Consequently, the court quashed the sale and confirmed that the attachment of the property was invalid after the limitation period expired. This decision emphasizes that strict adherence to statutory timelines is crucial in tax recovery proceedings. |
| Summary |
The case revolves around the interpretation of rule 68B of the Income-tax Act, 1961, which mandates that sales of attached immovable properties for tax recovery must be conducted within a specified limitation period. The petitioner, a partner in a firm, faced tax recovery actions due to unpaid dues for the assessment years 1986-87 and 1987-88. The Tax Recovery Officer attempted to auction the petitioner's flat several times, with the final sale attempt occurring on 30-03-2004, which was challenged on the grounds that it exceeded the limitation period. The court found that the limitation period began on 15-06-1994, when the tax demands were confirmed, and thus the sale was invalid. This decision underscores the importance of compliance with legal timelines in tax recovery processes, ensuring that taxpayers' rights are protected against arbitrary actions taken beyond legal limits. Keywords: Income-tax Act, tax recovery, limitation period, Bombay High Court, property sale, legal compliance. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
V.C. Daga,
J.P. Devadhar
|
| Lawyers |
V.H. Patil,
Ms. Asifa Khan,
Ashok Kotangale,
G. Hariharan
|
| Petitioners |
M.U. Joshi
|
| Respondents |
Tax Recovery Officer, Range (1)
|
| Citations |
2006 SLD 3422,
(2006) 281 ITR 289
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
222
|