Void tax assessments cannot support recovery; invalid demand notices and certificates made attachment unlawful despite outstanding tax liability.

Provisional assessments under section 23B of the Indian Income-tax Act, 1922 made before a return was filed under section 22 were void ab initio, and later rectification under section 35 could not validate them. Demand notices and a recovery certificate based on such void assessments therefore had no legal effect, and the validating provisions in section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 did not remove the need for a fresh valid demand notice or recovery certificate where the earlier one was void or cancelled. Recovery of tax must rest on authority of law, so attachment and recovery proceedings were illegal and relief was warranted in favour of the assessee.

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Issues: Whether recovery of income-tax could lawfully proceed on the basis of an earlier recovery certificate and demand notices when the provisional assessments were void, later rectified, and no fresh valid recovery certificate had been issued.

Analysis: A provisional assessment under section 23B of the Indian Income-tax Act, 1922 could validly be made only after receipt of a return under section 22. Assessments made before the return was filed were void ab initio and could not be validated by rectification under section 35. Demand notices and a recovery certificate founded on such void assessments also lacked legal effect. The validating provisions in section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964 did not dispense with the need for a fresh demand notice or recovery certificate where the earlier one was itself void or had stood cancelled. The existence of tax liability did not justify recovery without authority of law, and article 226 relief could not be refused merely because the tax was otherwise due.

Conclusion: The recovery proceedings and attachment were illegal, and relief was warranted in favour of the assessee.

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