https://www.taxtmi.com/caselaws?id=7088 The proviso to section 26(2) of the Income-tax Act, 1922 applies against a successor where the tax due from the predecessor is practically unrecoverable. The decisive enquiry is whether the demand can in fact be realised from the predecessor's available assets, not whether recovery is merely difficult or delayed. On the facts noted, the predecessor had transferred substantial business assets and otherwise denuded himself of valuable property, and the revenue's recovery efforts had failed. The Court therefore treated recovery from the predecessor as not feasible and upheld application of the proviso against the successor. en-us Tue, 05 Jul 1966 00:00:00 +0530 Sun, 08 Feb 2009 11:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7088 The proviso to section 26(2) of the Income-tax Act, 1922 applies against a successor where the tax due from the predecessor is practically unrecoverable. The decisive enquiry is whether the demand can in fact be realised from the predecessor's available assets, not whether recovery is merely difficult or delayed. On the facts noted, the predecessor had transferred substantial business assets and otherwise denuded himself of valuable property, and the revenue's recovery efforts had failed. The Court therefore treated recovery from the predecessor as not feasible and upheld application of the proviso against the successor. Case-Laws Income Tax Tue, 05 Jul 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7088