Right to hearing in attachment objections under tax recovery rules requires evidence and a speaking order before rejection.

In proceedings under rule 11 of the Second Schedule to the Income-tax Act, an objector to attachment must be given a real opportunity to be heard and to adduce evidence, because the procedure involves investigation into whether the property is liable to attachment and has serious consequences. The Tax Recovery Officer must then decide the objections by a reasoned speaking order dealing with the material placed before him. Rejection of objections without personal hearing or opportunity to lead evidence is unsustainable.

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Issues: Whether, in proceedings under rule 11 of the Second Schedule to the Income-tax Act, 1961, the petitioner was entitled to a personal hearing and an opportunity to adduce evidence before his objections to attachment were rejected.

Analysis: Rule 11 contemplates an investigation into objections raised against attachment or sale of property and permits the claimant or objector to establish by evidence that the property was not liable to attachment. The objection procedure is analogous to the power exercised by an executing court under Order 21, rule 58, of the Code of Civil Procedure, 1908. In view of the serious consequences flowing from attachment and from an adverse order under rule 11, the objector must be afforded a real opportunity of hearing and of leading evidence, followed by a reasoned speaking order dealing with the objections.

Conclusion: The petitioner was entitled to a personal hearing and an opportunity to adduce evidence, and the rejection of his objections without such hearing was unsustainable.

Ratio Decidendi: Where objections to attachment are to be determined under rule 11 of the Second Schedule to the Income-tax Act, 1961, the objector must be given a meaningful opportunity of hearing and of adducing evidence, and the Tax Recovery Officer must decide the objections by a speaking order.

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