| Case ID |
1531e094-a6e6-4b10-ae01-5cebb4d97db2 |
| Body |
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| Case Number |
Civil Appeal Nos. 564 TO 571 of 1968 |
| Decision Date |
Feb 02, 1970 |
| Hearing Date |
Feb 02, 1970 |
| Decision |
The Supreme Court of India held that the recovery proceedings initiated by the Union of India were not barred by limitation. The Court reasoned that under the agreements made, the total liability was calculated, and each party became jointly and severally liable for the whole sum. The failure to pay a single installment made the entire amount exigible. The Court found that the provisions of section 46(7) of the Indian Income-tax Act, 1922, were applicable, wherein the time for recovery could be calculated from the date of the last installment due. The High Court's ruling that the certificates were issued within the period of limitation was upheld, and the appeals were dismissed with costs. |
| Summary |
In the landmark decision of Civil Appeal Nos. 564 to 571 of 1968, the Supreme Court of India addressed critical issues surrounding tax recovery under the Income-tax Act, 1961, and its predecessor, the Indian Income-tax Act, 1922. The case involved Champa Kumari Singhi, who, under the 'Tyagi Scheme', had agreed to pay tax liabilities in installments. The key question was whether the recovery proceedings initiated by the Union of India were barred by limitation. The apex court ruled that failure to pay any installment led to the entire tax amount becoming due. The Court emphasized the importance of the agreements made, which stipulated that joint and several liabilities were incurred. The decision clarified the interpretation of section 46(7) of the 1922 Act, asserting that recovery could be initiated based on the last installment due date. This ruling has significant implications for future tax recovery cases, reinforcing the clarity of liability agreements and the timelines for tax recovery actions. Keywords: Supreme Court, tax recovery, Income-tax Act, limitation period, joint liability, legal precedent. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
Himayatullah C.J.,
Shah J.,
Grover J.,
Ray J.,
Dua J.,
Hedge J.
|
| Lawyers |
M.C. Chagla,
P.N. Tewari,
J.B. Dadachanji,
O.C. Mathur,
Ravinder Narain,
Jagdish Swarup,
R. Gopalakrishnan,
R.N. Sachthey
|
| Petitioners |
Champa Kumari Singhi
|
| Respondents |
Member, Board of Revenue
|
| Citations |
1970 SLD 703,
(1970) 78 ITR 74
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
222,
46(7)
|