1970 (11) TMI 34

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....l into arrears of income-tax and hence item No. 1 of the plaint schedule, an upstair house at Vizianagaram, was sold in public auction at a revenue sale held in pursuance of a letter of request issued by the income-tax authorities under the provisions of the Madras Revenue Recovery Act, 1864 (11 of 1864). The suit was resisted mainly by the appellant herein contending that as there was a purchase at a revenue sale, he got the property free from all the prior encumbrances and that his property is not therefore liable for the suit mortgage. The trial court as well as this court in Appeal No. 194/62 negatived this contention raised by the appellant. The main point for consideration in this appeal is whether the appellant (11th defendant) go....

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....eclared by an enactment to be treate as land revenue itself that the provisions of section 42 of the Madras Revenue Recovery Act are attracted. In Kadir Mokideen Marakkayar v. Muthukrishna Ayyar, a Division Bench of the Madras High Court consisting of Benson and Bashyam Ayyangar JJ. held, considering a similar provision of the Income-tax Act of 1864, as follows: "We are clearly of opinion that section 30 of the Income-tax Act has not the effect of converting income-tax into an arrear of land revenue due in respect of the land which may be brought to sale for realisation of the income-tax, but that its effect simply is to extend the procedure prescribed by (Madras) Act II of 1864 and (India) Act I of 1890, to the recovery of arrears of in....

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.... to be equivalent to land revenue dues, a sale under the Revenue Recovery Act is a sale for recovery of land revenue and that, under those circumstances section 42 is attracted. But the said decision is not applicable to the present case, for there is no provision in the Indian Income-tax Act equating the arrears of income-tax to arrears of land revenue. The provisions of the Land Revenue Act are attracted only in so far is they related to realisation and procedure for the recovery of the land revenue. For all the above reasons, we hold that, in the present case, the appellant is not entitled to rely upon the provisions of section 42 of the Madras Revenue Recovery Act. It follows that the sale in favour of the appellant is subject to the mo....