1990 (3) TMI 51

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....he petitioner has challenged the demand made against her by the Tax Recovery Officer by his notice dated August 24, 1983, under guarantee given by her under section 230(1) of the Income-tax Act, 1961, on April 26, 1966. It is pertinent to mention that one Lisbet Holmes, Canadian citizen, was having some business activity in India. When she was going abroad in the year 1966, she was required to obt....

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.... under rule 88 of the Second Schedule to the Income-tax Act, 1961, to the effect that a sum of Rs. 25,222 had fallen due from Lisbet Holmes in respect of assessment years 1969-70 to 1972-73 and that the petitioner was liable to pay the same under the guarantee. By letter dated September 20, 1983, the petitioner's chartered accountants wrote to the Tax Recovery Officer that the guarantee was for ta....

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....on 230(1) of the Income-tax Act, 1961. Section 230(1) requires certain persons leaving India for abroad to obtain a clearance certificate before their departure. That tax clearance certificate has to be a tax clearance certificate from his or her assessing Income-tax Officer to the effect that-that person has no liabilities under the Income-tax Act, Excess Profits Tax Act, Business Profits Tax Act....

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....er, the satisfactory arrangement must necessarily be also with regard to the same period, according to Dr. Balasubramanian, learned counsel for the Department, it is not so. It is stated that when the question of satisfactory arrangements comes in, the satisfactory arrangements ought to be not only with regard to the liability with reference to the date of the departure but to the liability for al....