https://www.taxtmi.com/caselaws?id=38626 The Union of India successfully argued for relief under section 189(3) of the Income-tax Act, holding ex-partners liable for dissolved firm's tax dues. Partners were found jointly liable under general partnership law. Government claims for tax dues were prioritized over other creditors, with court affirming government's paramount claim. The court had jurisdiction to order payment to government from sale proceeds, granting Union of India's claim of Rs. 7,49,062.42. The appeal was allowed, directing the Sheriff to pay the Union of India from the sale proceeds, setting aside the trial judge's judgment without costs awarded. en-us Fri, 17 Sep 1976 00:00:00 +0530 Wed, 07 Apr 2010 17:07:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38626 The Union of India successfully argued for relief under section 189(3) of the Income-tax Act, holding ex-partners liable for dissolved firm's tax dues. Partners were found jointly liable under general partnership law. Government claims for tax dues were prioritized over other creditors, with court affirming government's paramount claim. The court had jurisdiction to order payment to government from sale proceeds, granting Union of India's claim of Rs. 7,49,062.42. The appeal was allowed, directing the Sheriff to pay the Union of India from the sale proceeds, setting aside the trial judge's judgment without costs awarded. Case-Laws Income Tax Fri, 17 Sep 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38626