TaxTMI 
TaxTMI 
1996 (6) TMI 6
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.... the above writ petition. In support of the said relief, the petitioner has sworn to an affidavit, wherein she has stated that she is a practising advocate of the Madras High Court and Notary Public and in December, 1980, she purchased the property in premises No. 829, Mount Road, Madras 2, from Express Newspapers Pvt. Ltd., borrowing founds from the Bank of Tamil Nadu. The petitioner 's husband, one M.J. Durairaj, is also a law graduate who has been doing business in steel scrap for some years and for that purpose, the petitioner wanted to purchase a building in central place in Madras and accordingly she purchased the said property for a sale consideration of Rs. 36 lakhs inclusive of stamp duty and registration charges. She borrowed a sum of Rs. 10,50,000 from the bank of Tamil Nadu by pledging the property of her minor children. Since the petitioner could not pay back the loan amount, the Bank of Tamil Nadu had filed a suit C.S. No. 663 of 1983 for recovery of the said amount in this Court. She has further stated that the property tax arrears outstanding are to the tune of Rs. 3,17,779 according to the demand notice uptodate. Similarly the Water Supply & Sewage Board issued ....
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....bsp; Income-tax Officer, Central Circle XV, Dated 28/1/1987 To Vasantham Restaurant, Ist Floor, 829, Mount Road, Madras-2. A sum of Rs. 48,88,450 is due from M.S. Gnanasoundari, No. 11, 2nd Street, 3rd Main Road, C.I.T. Nagar Extension, Nandanam, Madras 35, for and on behalf of M.J. Durairaj as a benami owner of 829, Mount road, Madras 2, on account of income-tax/super-tax/penalty/interest/fine. You are hereby required under s. 226(3) of the IT Act, 1961, to pay to me forthwith any amount due from you to or, held by you, for or on account of the said......up to the amount of arrear shown above, and also request you to pay any money which may subsequently become due from you to him/them or which you may subsequently hold for on account of him/them up to the amount of arrears still remaining unpaid, forthwith on the money becoming due or being held by you as aforesaid as such payment is required to meet the amount due by the taxpayer in respect of arrears of income-tax/super tax/penalty/interest/fine. I am to say that any pa....
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.... XV, filed in Writ Appeal No. 368 of 1988 which arose out of the same proceeding. To have a clear picture of the stand of the Department, I have extracted the said counter-affidavit below which reads thus : "1. I am the Asstt. CIT, Central Circle III(3), and the assessing authority of Sri. M.J. Durairaj. Though the second respondent impleaded in the above writ appeal is ITO, Central Circle XV, the designation of the Asstt. CIT, Central Circle III(3), by virtue of the amendment made by the Taxation Laws (Amendment) Act, 1987. I am, therefore, competent to file the present affidavit on behalf of the second respondent. I am well acquainted with the facts of the case as seen from the records. I have already filed a detailed counter-affidavit in the writ petition and the present additional counter-affidavit is filed only to submit that notwithstanding the setting aside of the assessments for certain assessment years by the CIT(A), there is still tax arrear of Rs. 13,65,778 relating to the asst. yr. 1981-82, which has to be recovered. 2. The impugned proceedings under s. 226(3) of the IT Act, 1961, were initiated by the second respondent and notices were issued to various tenants o....
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.... --------- 3. It is true that the CIT(A) has set aside the assessments for the asst. yrs. 1973-74 to 1979-80 and 1982-83 and the orders of the CIT(A) dt. 31st Oct., 1988, were received by the Department in January, 1989. It is, however, submitted that in respect of the assessment for the asst. yr. 1981-82, there is a sum of Rs. 13,65,778 due from the assessee, Mr. M.J. Durairaj. It is, therefore, submitted that notice under s. 226(3) of the IT Act, 1961, already issued will now be confined to the arrears for the asst. yr. 1981-82 amounting to Rs. 13,65,778. 4. It is respectfully submitted that the petitioner is not correct in stating that all the assessment orders have been cancelled by the CIT(A) and no demand is outstanding. It is submitted that the order passed by the learned judge, which is now in appeal, does not call for interference, since the notice under s. 226(3) of the IT Act, 1961, is valid to the extent of tax arrears of Rs. 13,65,778 relating to the asst. yr. 1981-82. It is, therefore, prayed that the writ ap....
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....ce of certificate and amendment or cancellation thereof.-(1) It shall be lawful for the TRO to grant time for the payment of any tax and when he does so, he shall stay the proceedings for the recovery of such tax until the expiry of the time so granted. (2) Where the order giving rise to a demand of tax for which a certificate has been drawn up is modified in appeal or other proceeding under this Act, and, as a consequence thereof, the demand is reduced but the order is the subject-matter of further proceeding under this Act, the TRO shall stay the recovery of such part of the amount specified in the certificate as pertains to the said reduction for the period for which the appeal or other proceeding remains pending. (3) Where a certificate has been drawn up and subsequently the amount of the outstanding demand is reduced as a result of an appeal or other proceeding under this Act, the TRO shall, when the order which was the subject-matter of such appeal or other proceeding has become final and conclusive, amend the certificate, or cancel it, as the case may be." 7. A reading of these sections makes it clear that an amount specified in the certificate issued under s. 222 o....