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TMI Blog1966 (4) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestigation Circle " B " Amritsar. It is said that during the course of the enquiries which he was making, he got into touch with the petitioner who was summoned by him. The petitioner appeared before him on 13th January, 1965, and his statement on oath was recorded. In that statement the petitioner is stated to have given details of all the transactions of which he was aware pertaining to purchase and sale of the cars by Shri Surinder Singh Kairon and Shri Gurinder Singh Kairon. The petitioner was served with a notice (annexure " B ") dated 24th May, 1965, by the aforesaid Income-tax Officer under section 226(3) of the Income-tax Act, 1961. It was stated therein that a sum of Rs. 2,83,752.98 was due from Shri Surinder Singh Kairon on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... towards the National Government. You once called me at Delhi through Shri Surinder Singh Kairon when I was there on a private visit. You asked me to sign a piece of paper on which you had written something and I signed the paper thinking that it is again something regarding the income-tax enquiries against Shri Surinder Singh Kairon. " The Income-tax Officer sent a reply dated 15/16th September, 1965 (annexure " E "), pointing out that from the previous statements made by the petitioner, it stood admitted that he was liable to pay the amount to Shri Surinder Singh Kairon and, therefore, the petitioner could not be permitted to resile out of that position. An order of attachment was then issued on 16th September, 1965, and the petitioner w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause (vi) of the same sub-section reads thus : " Where a person to whom a notice under this sub-section is sent objects to it by a statement on oath that the sum demanded or any part thereof is not due to the assessee or that he does not hold any money for or on account of the assessee, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the Income-tax Officer to the extent of his own liability to the assessee on the date of the notice, or to the extent of the assessee's liability for any sum due under this Act, whichever is less ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... real objections to the notice were contained in the letter dated 27th October, 1965, which was supported by an affidavit. It is emphasised that the statement previously recorded on 13th January, 1965, was before the issuance of the notice dated 24th May, 1965, and could be of no avail to the respondents who were bound to comply with the provisions contained in clause (vi) of section 226(3). The language of the above provision on which Mr. Bhagirath Dass has relied is quite clear. When a notice has been served under section 226(3)(i), the person on whom the notice has been served should file objections supported by a statement on oath that the sum demanded is not due to the assessee, etc. If, however, it is discovered that such statement w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which were not supported by an affidavit which were rejected and the attachment proceedings were taken, it was too late for the petitioner to take advantage of the provisions contained in clause (vi). Mr. Bhagirath Dass has submitted that no period of limitation has been prescribed for the purpose of sending objections under clause (vi) but it is plain from the language employed therein that the proper stage when such objections should be sent is the time when the notice is received under section 226(3)(i). The law does not contemplate that he can first send objections without oath and wait till it suits his convenience to file an objection supported by a statement on oath. At any rate, the circumstances of this case are such that this co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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