9911796707
TMI Blog1996 (6) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... worn to an affidavit, wherein she has stated that she is a practising advocate of the Madras High Court and Notary Public and in December, 1980, she purchased the property in premises No. 829, Mount Road, Madras 2, from Express Newspapers Pvt. Ltd., borrowing founds from the Bank of Tamil Nadu. The petitioner 's husband, one M.J. Durairaj, is also a law graduate who has been doing business in steel scrap for some years and for that purpose, the petitioner wanted to purchase a building in central place in Madras and accordingly she purchased the said property for a sale consideration of Rs. 36 lakhs inclusive of stamp duty and registration charges. She borrowed a sum of Rs. 10,50,000 from the bank of Tamil Nadu by pledging the property of her minor children. Since the petitioner could not pay back the loan amount, the Bank of Tamil Nadu had filed a suit C.S. No. 663 of 1983 for recovery of the said amount in this Court. She has further stated that the property tax arrears outstanding are to the tune of Rs. 3,17,779 according to the demand notice uptodate. Similarly the Water Supply Sewage Board issued a notice to pay a sum of Rs. 2,26,035 which are payable by the petitioner, in ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ras-2. A sum of Rs. 48,88,450 is due from M.S. Gnanasoundari, No. 11, 2nd Street, 3rd Main Road, C.I.T. Nagar Extension, Nandanam, Madras 35, for and on behalf of M.J. Durairaj as a benami owner of 829, Mount road, Madras 2, on account of income-tax/super-tax/penalty/interest/fine. You are hereby required under s. 226(3) of the IT Act, 1961, to pay to me forthwith any amount due from you to or, held by you, for or on account of the said......up to the amount of arrear shown above, and also request you to pay any money which may subsequently become due from you to him/them or which you may subsequently hold for on account of him/them up to the amount of arrears still remaining unpaid, forthwith on the money becoming due or being held by you as aforesaid as such payment is required to meet the amount due by the taxpayer in respect of arrears of income-tax/super tax/penalty/interest/fine. I am to say that any payment made by you in compliance with this notice is in law deemed to have been made under the authority of the taxpayer and my receipt will constitute a good and sufficient discharge of your liability to the person to the extent of the amount referred to in the receipt. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Sri. M.J. Durairaj. Though the second respondent impleaded in the above writ appeal is ITO, Central Circle XV, the designation of the Asstt. CIT, Central Circle III(3), by virtue of the amendment made by the Taxation Laws (Amendment) Act, 1987. I am, therefore, competent to file the present affidavit on behalf of the second respondent. I am well acquainted with the facts of the case as seen from the records. I have already filed a detailed counter-affidavit in the writ petition and the present additional counter-affidavit is filed only to submit that notwithstanding the setting aside of the assessments for certain assessment years by the CIT(A), there is still tax arrear of Rs. 13,65,778 relating to the asst. yr. 1981-82, which has to be recovered. 2. The impugned proceedings under s. 226(3) of the IT Act, 1961, were initiated by the second respondent and notices were issued to various tenants of the building at No. 829, Mount Road, Madras-2, for recovery of a total tax arrear of Rs. 48,68,400. The break-up details for this amount are given below : Assessment year Tax and interest (Rs.) 1973-74 98,359 1974- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithstanding the setting aside of the assessment order, it cannot survive Since there is no such provision, it is not possible to say that such attachment order survives and remains effective, notwithstanding the setting aside of the assessment order which gave rise to the attachment order." 6. Now, let me examine the rival contentions of the parties. It will be better to extract s. 226(3)(i) of the Act which is as follows : "The AO or TRO may, at any time or from time to time, by notice in writing require any person from whom money is due or may become due to the assessee or any person who holds or may subsequently held money for or on account of the assessee, to pay to the AO or TRO either forthwith upon the money becoming due or being held or at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due by the assessee in respect of arrears or the whole of the money when it is equal to or less than that amount." In this connection, it will also be necessary to consider ss. 224 and 225 of the Act. Sec. 224 of the Act reads as follows : "It shall not be open to the assessee t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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