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Issues:
1. Priority of payment to Income Tax and Sales Tax Departments over other creditors in execution of a decree. 2. Liability of sons in joint family property for father's debts. 3. Jurisdiction of State to claim prior payment under Section 151 CPC. 4. Applicability of Section 46 of the Income Tax Act on the jurisdiction of the court. 5. Point of limitation raised in the appeal. Analysis: 1. The appeals challenged the orders directing payment of sale proceeds from the execution of a decree to Income Tax and Sales Tax Departments over the appellant. The contention was that sons' share should not have priority, and the State should not claim payment through a mere application under Section 151 CPC. The trial court allowed the applications of the Tax Departments, emphasizing the priority of State debts. 2. The appeal argued against the liability of sons in joint family property for the father's debts. The court upheld the doctrine of pious obligation, holding that sons' interests in joint family assets are answerable for the father's debts, provided they are not illegal or immoral. The State's priority in payments extends to debts based on pious obligation if not tainted by illegality or immorality. 3. The judgment discussed the State's right to claim prior payment without obtaining a decree, invoking Section 151 CPC. Citing precedent, the court ruled that the State can utilize inherent court powers for recovery, without the need for a separate suit, to avoid unnecessary delays and costs. The court emphasized the efficiency of using Section 151 CPC for tax recovery. 4. The judgment addressed the argument regarding the applicability of Section 46 of the Income Tax Act on court jurisdiction. It clarified that Section 46 is not exhaustive, and the Income Tax Officer can choose to use it but is not bound by it. The court affirmed that Section 151 CPC can be utilized by the Tax Department for recovery, even if Section 46 exists. 5. Lastly, a point of limitation was raised concerning the one-year period prescribed by Section 46 of the Income Tax Act. The court declined to address this argument as it was raised for the first time on appeal, requiring further investigation into the timeline of assessments and appeals. The lack of material led to the dismissal of the appeals and the alternative petitions. In conclusion, the High Court upheld the priority of State debts in the distribution of sale proceeds, affirmed the liability of sons in joint family property for father's debts, recognized the State's right to claim prior payment under Section 151 CPC, clarified the non-exhaustive nature of Section 46 of the Income Tax Act, and declined to address the limitation argument due to insufficient information.
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