9911796707
TMI Blog1971 (10) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... ood to his credit as per the firm's books. But later, certain adjustments were made and such adjustments resulted in the reduction of the credit as above to a sum of Rs. 20,239,78 as on July 31, 1952. The normal presumption, therefore, is that only a sum of Rs. 20,239.78 should be deemed to be the credit in the name of late Sadulla Basha on the date of his death. The surviving partners of the firm entered into an arrangement with the heirs of Sadulla Basha and took them in as partners in the firm, the minors obviously being made partners therein to be entitled to the benefits thereof and thus the firm continued in the same trading name but with a change in the constitution of its partners. It appears that several of the partners in the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nner already stated and, ultimately, allowed them to withdraw the amounts from the said credit in the course of their association with the partnership firm and the result is that the petitioner not only ignored the notice given by the Income-fax Officer under section 46(5A) of the Act, but he has become answerable to all the consequences which ordinarily flow from the non-observance or compliance with the notice under section 46(5A) of the Act. The Income-tax Officer corresponded with the firm and called upon the firm on several occasions to pay the said amount towards the arrears of tax due by Sadulla Basha but all such demands and communications were of no avail. In fact, on March 9, 1967, the Income-tax Officer pointed out that the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 46(5A) is in the nature of a garnishee proceeding and it is intended to protect the revenue and enables it to call upon the creditor of "the assessee in default" from paying over the moneys in his hands to anyone without notice to the income-tax department or the revenue. This is one of the accredited methods by which both under the common law and under the taxing statute moneys payable by a debtor are secured and later recovered. In the instant case, on July 22, 1952, when Sadulla Basha died, there was a cash credit of Rs. 20,239.78 after due adjustments as stated in the counter-affidavit. I have referred to the fact that this should be taken to be the amount which stood as the amount to the credit of Sadulla Basha on the date of his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... untary act cannot convert the money belonging to Sadulla, to be the money of someone else other than Sadulla. The claim of the petitioner is that after the division of the funds as between the heirs, it had ceased to be Sadulla's fund. This is not acceptable at all. It continued to be Sadulla's funds in the hands of his heirs. The firm which is the petitioner in this case should be deemed to be aware of such a situation and should be deemed to have had notice that such fund, though divided for a particular purpose by the heirs, was really the moneys of Sadulla which remained in the reconstituted firm and over which the firm had control. In this sense, the petitioner had the moneys of Sadulla and was aware that it was dealing with such money ..... X X X X Extracts X X X X X X X X Extracts X X X X
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