| Case ID |
22464ffd-7349-4590-a420-1e19d5148f91 |
| Body |
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| Case Number |
Civil Miscellaneous Writ Petition No.718 of 1996 |
| Decision Date |
Oct 17, 1996 |
| Hearing Date |
Oct 16, 1996 |
| Decision |
The court held that the Tax Recovery Officer should first sell the factory which was under attachment and if the sale proceeds were not sufficient to satisfy the whole recovery, then only the residential house in question should be sold. It was emphasized that only a sufficient portion of attached property should be put to auction to satisfy recovery, and the intent of the legislature is not to sell the entire property amounting to crores for recovering a few lakhs. The impugned orders regarding the sale of the residential house were set aside, allowing recovery proceedings to focus on the factory first. |
| Summary |
This case involves a dispute regarding the recovery of income tax dues against the estate of Sardar Saran Singh, particularly focusing on the attachment and sale of properties. The Allahabad High Court ruled on the proper procedure for the Tax Recovery Officer to follow, stipulating that only a portion of attached property should be sold to satisfy the recovery amount, rather than the entire property. This case emphasizes the balance between tax recovery and the rights of property owners. Key points include the judicial interpretation of the Income Tax Act and the Civil Procedure Code, highlighting the importance of following legal protocols in property sales for tax recovery. The ruling is significant for understanding the limitations on property sales in tax recovery cases, ensuring that only necessary portions of property are liquidated, thereby protecting the interests of property owners. The decision is critical for legal practitioners and tax officers alike, as it sets a precedent for future tax recovery procedures, navigating the complex intersection of tax law and property rights. |
| Court |
Allahabad High Court
|
| Entities Involved |
Atma Singh Steel Rolling Mills, Kanpur
|
| Judges |
B. M. LAL,
B. K. SHARMA
|
| Lawyers |
Shashi Kant Gupta,
Ashok Kumar
|
| Petitioners |
Smt. MOHINDER KAUR
|
| Respondents |
Income Tax OFFICER and others
|
| Citations |
1999 SLD 387,
1999 PTD 2751,
(1997) 228 ITR 545
|
| Other Citations |
Ambati Narasayya v. Subba Rao (M.) AIR 1990 SC 119
|
| Laws Involved |
Income Tax Act, 1922,
Indian Code of Civil Procedure, 1908
|
| Sections |
0.21, R.64
|