TaxTMI 
TaxTMI 
1973 (2) TMI 26
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....59. The assessee preferred an appeal against the imposition of penalty. This appeal was allowed on December 6, 1961, and the penalty of Rs. 19,200 was reduced by Rs. 13,300. The amount that remained recoverable after the appellate order was only Rs. 20,395. The Tax Recovery Officer proceeded with the sale on the basis of the recovery certificate issued by the taxing authority for Rs. 33,695 and conducted the sale on 12th and 13th November, 1963. Properties belonging to the assessee were sold for a total amount of Rs. 35,100. The sale was confirmed on 14th April, 1964. The assessee filed the writ petition in this court challenging the validity of the sale proceedings on the ground that no fresh notice of demand was issued to him after the....
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.... upon the assessee a fresh notice of demand ; (ii) the taxing authority shall give intimation of the fact of such reduction to the assessee, and where a certificate has been issued to the Tax Recovery Officer for the recovery of such amount, also to that officer ; (iii) any proceedings initiated on the basis of the notice or notices of demand served upon the assessee before the disposal of such appeal or proceedings may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal ; (c) no proceedings in relation to such Government dues (including the imposition of penalty or charging of interest) shall be invalid by reason only that no fresh notice of demand was s....
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....s so that a fresh recovery certificate be issued and fresh proceedings for recovery be commenced. In the case of Baladin Ram Kalwar the sale was held for the amount that was actually due and the facts mentioned in the judgment do not indicate that the intimation, as contemplated by sub-clause (ii) of clause (b) of section 3 of the Act, had not been given. The case of Baladin Ram Kalwar thus, cannot support the contention of the learned counsel for the appellant. The Act was enacted to get over the effect of the judgment of the Supreme Court in Income-tax Officer v. Seghu Buchiah Setty, according to which the recovery proceedings started on the basis of the original notice of demand and the recovery certificate could not be continued afte....
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....n of the proceedings after the appeal is allowed, but only for the amount that actually remains due after its reduction in appeal. The right to recover any amount from a defaulting assessee corresponds to his liability to pay the dues. Recovery of a larger amount is not permitted. Sub-clause (iii) of clause (b) of section 3 of the Act permits the continuance of the proceedings only in relation to the amount so reduced in appeal from the stage at which such proceedings stood immediately before the disposal of the appeal It does not permit the continuance of the proceedings in relation to the amount higher than the amount that remains due after reduction. The effect of these provisions is to dispense with the need of issuing a fresh notice....