Income-tax recovery from partner of unregistered firm upheld without separate demand notice under section 29.

Liability under section 29 of the Income-tax Act, 1922 was treated as liability arising under the Act itself, not merely from partnership law, so a partner of an unregistered firm was not covered as an "other person liable to pay" solely because partners are jointly and severally liable. At the same time, the recovery machinery in section 46(2), read with civil court execution powers and Order XXI, rule 50 of the Code of Civil Procedure, was considered applicable where the partner admitted membership of the firm for the relevant accounting year. On that basis, no separate notice under section 29 was required against the partner and recovery of the firm's arrears from him was upheld.

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Issues: Whether a separate notice of demand under section 29 of the Income-tax Act, 1922 was necessary before recovery proceedings could be taken against a partner of an unregistered firm, and whether the Collector could recover the firm's tax arrears from such partner under section 46(2) of that Act.

Analysis: The liability contemplated by section 29 was construed as liability arising under the Income-tax Act itself, not liability derived from the Partnership Act. A partner of an unregistered firm did not fall within the expression "other person liable to pay" merely because partnership law made the partners jointly and severally liable. The recovery machinery in section 46(2), read with the powers of a civil court under the Code of Civil Procedure, was held applicable to execution against a partner where the partner admitted membership of the firm for the relevant accounting year. Order XXI, rule 50 of the Code of Civil Procedure, 1908 supported recovery against a partner in such circumstances.

Conclusion: No separate notice under section 29 was required against the partner, and the Collector could lawfully recover the tax arrears from him under section 46(2). The challenge to the recovery proceedings failed.

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