9911796707
TMI Blog1980 (6) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... y virtue of the power vested in the authority under the Act under subsection (2) of section 15 of the Act assessments were made against the dissolved firm for the assessment years 1974-75 and 1975-76. Thereafter, applications were filed under section 13(3)(b) of the Act before the Court of the Judicial Magistrate, First Class, Bagalkot, for the recovery of the tax due from the firm. In the application though the firm was shown as respondent, in the note below the application, the names and addresses of all the four partners were furnished. After the application was filed, the Magistrate passed orders attaching the properties of some of the partners. Thereafter, the petitioner and another filed their objections before the Magistrate objectin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondents to these revision petitions. 4.. The learned counsel appearing for the second respondent, the Assistant Commissioner of Commercial Taxes (Assessment), Belgaum, submitted as follows: The partnership firm of which the petitioner was a partner was dissolved and the fact of dissolution was published in the issue dated 2nd November, 1975, of the Samyuktha Karnataka paper. Section 15(2) of the Act empowers the department to assess a dissolved firm. The said sub-section also empowers the department to serve notice of demand only on one of the partners and, therefore, the department had served a notice of demand on H. Kankanmali who was one of the partners and who had been authorised by the other partners to represent them in the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution had taken place. The second part of the said sub-section declares that every person who was a partner at the time of dissolution or the legal representative of any such person, if deceased, shall be jointly and severally liable to pay the tax assessed or the penalty imposed. The twin objects of the said subsection therefore are to provide for making an assessment on a dissolved firm which would have been impossible but for the said provision and also to declare the liability of the erstwhile partners to pay such tax. But before a partner can be regarded as a defaulter, a notice of demand under sub-section (1) of section 13 is mandatory. Unless a notice is issued under sub-section (1) of section 13 and in the manner prescribed under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorise the authorities to serve demand notice on any one of the ex-partners and to treat other ex-partners on whom no notice of demand is served as defaulters and to proceed to recover the tax from them by making an application under section 13(3) of the Act. The said rule does not also provide that the service of notice on any one person shall be deemed to be a service on all other persons so as to make others individually liable to be proceeded against under section 13(3) of the Act. 6.. The learned counsel for the respondent however submitted that service of a notice on one of the partners and the receipt of such notice by one of the partners on behalf of the firm was sufficient to make every one of the other partners defaulters fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The learned counsel appearing for the auction purchaser submitted that a huge sum of Rs. 40,000 towards auction sale has been deposited with the revenue authorities and, therefore, a direction may be issued for the immediate refund of that amount. This is a matter in respect of which the auction purchasers should make appropriate application before the learned Magistrate. If such an application is made, the Magistrate is directed to dispose of the application expeditiously. 9.. For the reasons stated above, we make the following order: The orders of the Judicial Magistrate, First Class, Bagalkot, overruling the objections of the petitioner are set aside and he is directed to proceed to pass appropriate orders in the light of this judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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