1966 (7) TMI 15

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ction 66(1) of the Indian Income-tax Act, 1922. The question referred to us is in these terms: "Whether, on the facts and in the circumstances of the case, the order passed under section 26(2) of the Income-tax Act, 1922, for the assessment year 1957-58 is justified in law ? " Section 26(2) of the Income-tax Act, 1922, provides in certain cases for an assessment being made on the person succ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t of any tax so paid. " It is admitted before us that all the conditions necessary except the one which speaks of " cannot be recovered from him " have been satisfied in this case. As far as this condition, which is a condition precedent in order that the proviso may be applied against the successor, is concerned there is keen controversy and it is urged by counsel on behalf of the assessee tha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ncy business. The assessee might have declared a net wealth of Rs. 3,73,903 but the point to be seen is whether the tax could be recovered from Damodaran. It is not the existence of assets but the hard fact whether the department could recover the tax dues from this person. If every effort made by the department fails and if an assessee goes on denuding himself of all valuable assets, it can truly....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e the Tribunal and no reasoning on the basis of which it is possible to find that the conclusion has been reached not merely on this observation but on the materials available before it as to the availability or otherwise of the assets, we would have answered the question in favour of the assessee. We do not think we can do so on the facts as they are seen from the papers before us. We may as well....