https://www.taxtmi.com/caselaws?id=231300 Garnishee recovery under section 226(3) requires the noticee to owe money to, or hold money for, the assessee in the same legal capacity when notice is issued. A bank holding a firm's overdrawn cash-credit account is its creditor, not its debtor; a proprietor's separate savings account cannot be combined with the firm account without a notice directed to that account. The earlier garnishee notice had been abandoned and could not support recovery. Personal liability of a branch manager as an assessee in default requires proof that the bank's statutory objection was materially false. As that precondition was not established, the recovery order was unsustainable and was quashed with costs. en-us Fri, 05 Apr 2013 00:00:00 +0530 Mon, 22 Apr 2013 14:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=231300 Garnishee recovery under section 226(3) requires the noticee to owe money to, or hold money for, the assessee in the same legal capacity when notice is issued. A bank holding a firm's overdrawn cash-credit account is its creditor, not its debtor; a proprietor's separate savings account cannot be combined with the firm account without a notice directed to that account. The earlier garnishee notice had been abandoned and could not support recovery. Personal liability of a branch manager as an assessee in default requires proof that the bank's statutory objection was materially false. As that precondition was not established, the recovery order was unsustainable and was quashed with costs. Case-Laws Income Tax Fri, 05 Apr 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=231300