1986 (4) TMI 337

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....er, Nellore, served a notice on October 4, 1979, on the branch office of the State Bank of Hyderabad, Nellore. In that notice the bank was informed that Nunna Venkata Krishnayya is due in Rs. 19,800 to the Sales Tax Department. If any amount is lying in deposit to the credit of Krishnayya such amounts be remitted to the department. On that date Rs. 396.63 was in deposit. The bank promptly paid the....

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.... notice dated October 4, 1979, stood discharged and cited the case of Income-tax Officer v. Budha Pictures [1967] 65 ITR 620 (SC); AIR 1967 SC 1547.   In that case section 46(5A) of the Indian Income-tax Act, 1922, was interpreted at para 4 (page 1549 of AIR; 623 of ITR) which reads: "The learned counsel for the appellant contends that section 46(5A) applies in four sets of circumstance....

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....culative considerations. It seems to us that the Legislature contemplated a subsisting relationship of which the Income-tax Officer gets information and which could reasonably lead to recovery of arrears. Theoretically, it would be possible for an assessee to enter into relationship with almost anybody, say. in the town in which he resides. We can hardly imagine that it was expected that the Incom....