2001 (12) TMI 19

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..... Revenue was not entitled to initiate proceedings against the trustees to recover the dues from Narayan Prasad Choudhury. - The appeal is, dismissed
Judge(s) : ASHOK KUMAR MATHUR, SUBHRO KAMAL MUKERJEE. JUDGMENT SUBHRO KAMAL MUKHERJEE J.-This appeal is directed against an order dated January 9, 1979, passed by a learned single judge of this court in connection with an application under article 226 of the Constitution of India. Admittedly, Narayan Prasad Choudhury was the owner of the premises No. 2/2B Harington Street, Calcutta, to the extent of 35/96ths shares and 1/6 of 61/96ths shares. Narayan Prasad Choudhury was an assessee of the Income-tax Act. Narayan Prasad Choudhury was liable to pay certain sums on account of income-tax, su .....

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..... the said deed of trust as a revocable trust. It is, further, alleged that the Revenue was not entitled to initiate proceedings against the trustees to recover the dues from Narayan Prasad Choudhury. The respondents filed an affidavit-in-opposition. It was contended that the deed of trust was created fraudulently and to defraud the creditors including the Revenue to whom large sums of money were due. The learned single judge in his order dated January 9, 1979, however, decided to proceed on the basis that the said trust was a revocable trust. However, the learned judge quashed the notices under section 226(3) of the Income-tax Act and quashed the certificate proceedings challenged before him. So far as the assessment for the assessment y .....

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..... under section 281 of the said Act. In the order impugned the learned judge himself has observed that having regard to the terms of the deed and the conduct of the parties, it left little scope for doubt as to for what purpose the said deed of trust was created, but the learned judge refrained from making any final observation in the matter holding, inter alia, that the learned judge was not called upon to decide the said question finally as a fact. We have considered the deed of trust. The said deed of trust was created for the maintenance, education, marriage and other expenses and benefits of the minor children of Narayan Prasad Choudhury and his wife. It is also clear from the provisions of the deed of trust that part of the income an .....

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