1966 (7) TMI 58

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ounts, and as a result of these revisions and the assessment for the subsequent year 1960-61, demand notices were served on the petitioner on 7th October, 1963, and as he failed to pay the tax so assessed within a month, he was prosecuted under section 45(2)(b) of the Madras General Sales Tax Act on the ground that he had fraudulently evaded payment of the tax assessed and demanded by the department. It is stated that the prosecution had been withdrawn subsequently. The petitioner filed I.P. No. 3 of 1965 in the District Munsif's Court, Salem, to adjudicate him as insolvent. It was opposed by the Sales Tax Department and the proceedings in the Insolvency Court are pending. But the Commercial Tax Officer, Salem, has arrested the petitioner u....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....dulent conduct in order to evade payment, it shall be lawful for him to cause the arrest and imprisonment of the defaulter or his surety, not being a female, as hereinafter mentioned." Thus in order to invoke this power of arrest by virtue of section 29 of the Madras General Sales Tax Act, the Commercial Tax Officer should have not only reason to believe that the petitioner is wilfully withholding payment of the arrears, or has been guilty of fraudulent conduct in order to evade payment, but also that the arrears of tax cannot be liquidated by the sale of the property of the defaulter. It is unnecessary to go into the question whether the Commercial Tax Officer had materials upon which he could base his belief that the petitioner was fraudu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....i Ahmed v. Collector of Bombay(1) and held that section 46(2) of the Indian Income-tax Act, 1922, prescribes two alternative modes of procedure for realising arrears of (1) [1949] 17 I.T.R. 371 at 373. (2) [1955] 28 I.T.R. 891. income-tax but that what all the sub-section directs the Collector to do is to proceed to recover the certified amount as if it were an arrear of land revenue, that is to say, he is to adopt the procedure prescribed by the appropriate law of his State for the recovery of land revenue and that in thus proceeding he is, under the proviso, to have all the powers a civil court has under the Code. The decision of the Supreme Court does not affect the correctness of the view of the Bombay High Court on the interpretation o....