9911796707
TMI Blog1969 (12) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... Bangalore-respondent-to issue to the petitioner a tax clearance certificate under section 230(1) of the Income-tax Act, 1961. The petitioner is the widow of J. Sattler, who died on June 8, 1963. She applied for a tax clearance certificate in order to enable her to leave this country and go to New Zealand where her daughter is residing. The respondent by his order dated May 23, 1969, has refused to grant the tax clearance certificate on the ground that a sum of Rs. 48,715 is recoverable from the petitioner as legal representative of her deceased husband and that, unless the said amount of tax with interest is paid, the petitioner is not entitled to a tax clearance certificate. The petitioner's contention is that not tax is recoverable fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceased husband. The contention of the petitioner is that on that insolvency adjudication of Mr. Sattler and K. S. Gandhi, the firm of " Inka Corporation " became dissolved with effect from February 17, 1953, and after dissolution of the firm, the firm as such could not have been assessed and the proper procedure was to assess the partners jointly and severally and then issue demand notices under section 29 of the Indian Income-tax Act 1922 (hereinafter called " the Act " ), to the quondam partners and that, in the absence of any assessment made on Mr. Sattler, the petitioner as his legal representative is not liable to discharge the tax assessed on the dissolved firm. The petitioner had preferred Writ Petition No. 1747 of 1963 in this cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices of demand were not served on the petitioner's husband, Mr. Sattler. Section 44 of the Act, as it stood before its amendment in 1958, provided that where any business carried on by a firm has been discontinued, every partner of such firm who was at the time of the discontinuance or dissolution a partner of such firm shall, in respect of the income, profits and gains of the firm, be jointly and severally liable to assessment under Chapter IV and for the amount of tax payable. By the amendment made in 1958 and also under the Income-tax Act, 1961, assessment can be made on a dissolved firm but in the instant case we are concerned with section 44 of the Act prior to its amendment. In Manindra Lal Goswami v. Income-tax Officer, the Calcu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. Section 29 of the Act provides that where any tax is due in consequence of any order passed under the Act, the Income-tax Officer shall serve upon the assessee or other persons liable to pay such tax a notice of demand in the prescribed form specifying the sum so payable. The assessees in the case of a firm whose business has been discontinued are the partners who are liable to be assessed. It is not disputed before us that the petitioner's husband as ex-partner of the dissolved unregistered firm of " Inka Corporation" was not assessed to tax nor any notice of demand was served on him. On the basis of assessment made on the dissolved firm of " Inka Corporation ", notices of which were given only to Mr. K. S. Gandhi, the petitioner's h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
