1992 (10) TMI 47 - HC - Income Tax

Summary

Issues:
1. Whether the petitioner is entitled to the return of title deeds deposited with the Income-tax Department as security for tax arrears?
2. Whether the properties attached by the Income-tax Department belong to the petitioner or her husband?
3. Whether the petitioner's liability is towards the tax arrears of her husband or any partners of the firms?

Detailed Analysis:
1. The petitioner, an assessee, was initially assessed to pay income tax for the assessment year 1966-67. Following an appeal against the assessment order, a fresh assessment was made, resulting in a substantial reduction in the demand. The petitioner deposited title deeds of properties as security for the tax assessed. Despite paying the revised tax amount, the Income-tax Officer did not return the title deeds upon request. The petitioner sought a writ of mandamus for the return of the title deeds, claiming they were deposited solely for the tax assessed against her.

2. The petitioner asserted that she was not a partner in the firms where her husband and children were partners. However, the Income-tax Department treated the properties, for which title deeds were deposited, as belonging to the petitioner. The Department assessed wealth tax based on these properties and treated the income from them as the petitioner's. An order of attachment was issued against the petitioner's properties due to tax arrears of her husband, not considering the security created by depositing the title deeds.

3. The court referred to a similar case where the Division Bench directed the return of title deeds deposited as security for tax arrears of the petitioner. In the present case, there was no evidence to suggest that the documents were deposited for the tax arrears of the petitioner's husband or partners. As there were no arrears due from the petitioner herself, the court concluded that the documents deposited as security should be returned to the petitioner. The judgment directed the Income-tax Department to return the title deeds deposited by the petitioner, as there was no indication that they were deposited for the tax arrears of her husband or partners.