9911796707
TMI Blog1998 (9) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... ney of defaulter/customer. 2.. This interpretation is contrary to law as well as the bank practice. If there is any amount of the defaulter with the bank and the commercial tax department issues notice under section 14 of the Act, then the Bank is bound to remit it. But, if the facility has been given to customer to draw overdraft or any credit facility, in that case the said amount cannot be co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank does not owe any money to the customer. 3.. The matter has been examined and it is considered that once a bank sanctions overdraft facility to a dealer, it binds itself to pay to the dealer the amount of money agreed to be advanced under the overdraft arrangement. In that sense, the bank owes that sum of money to the dealer. And therefore, the bank cannot resile from that position when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the money would be payable to the bank and not to the assessee-company, the money, i.e., sale proceeds could not be said to be due and payable to the assesseecompany and hence the said money would not be payable to the income-tax department under section 226(3) for recovery of taxes due on the assessee-company and consequently the question of priority between income-tax department and bank did no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.. Under section 14 of the Karnataka Sales Tax Act, 1957, any person from whom money is due or may become due to the dealer or who holds or may subsequently holding money for or on account of the dealer is liable to pay to the assessing authority the said amount. A credit facility by way of overdraft or otherwise cannot be considered to be authorising the department to realise the amount for w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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