9911796707
TMI Blog1997 (10) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. He was an assessee under the Indian Income-tax Act and Wealth-tax Act on the file of the Income-tax Officer, B-Ward, Circle-I, Calicut. He was in arrears of income-tax, wealth-tax and interest thereon amounting to Rs. 8,97,773. Recovery proceedings were initiated by the Tax Recovery Officer, Calicut. An item of immovable property belonging to the petitioner, viz., bank house property, was put ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1989 in O. S. No. 84 of 1981 for a direction to the Tax Recovery Officer to deposit the entire sale proceeds in court. The court ordered that the Tax Recovery Officer would pay her the amount due as per the decree with interest as ordered by the Subordinate judge. It was brought to the notice of the court by the Department that a sum of Rs. 4,09,673.80 was already in deposit in that court and tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In exhibit P-6 it has been stated that the binding nature of the debt due to Jolly Thomas was not known at the time of sale proclamation. But at the time of conducting the public auction on February 7, 1989, it was clearly mentioned that the liability in respect of the decree of the court will be cleared by the Department out of the sale consideration received from the auction money. Original pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oclamation the binding, nature of the liability towards Jolly Thomas was not considered. Learned counsel for the Department, Shri N. R. K. Nayar, contended that there is no dispute that the amount due to the Chartered Bank was a prior charge and that it had preference over the tax liability. It was further contended that in the execution proceedings, the department has been directed to pay the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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