9911796707
TMI Blog1992 (3) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... ontributing their labour. For the assessment year 1983-84, the petitioner-society claimed exemption under section 80P(2)(a)(vi) of the Income-tax Act, 1961, in respect of the income earned by it by sale of such forest produce. The Income-tax Officer granted exemption, but the Commissioner of Income-tax, in exercise of his revisional powers, disallowed the same. The petitioner, therefore, filed an appeal to the Tribunal. That appeal was dismissed by the Tribunal on the ground of limitation. Meanwhile, pursuant to the order passed by the Commissioner, in exercise of his revisional powers, the Income-tax Officer passed a fresh order of assessment whereby the exemption claimed by the petitioner-society was disallowed. Against that order, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the petitioner, he would be constrained to take coercive measures for recovery. By that order, the Income-tax Officer also drew the attention of the petitioner society to the fact that Rs. 2,80,688 had fallen due as tax for the assessment year 1984-85, and, if that amount was also not paid, then for recovering the same also, coercive measures would be taken. Meanwhile, on December 13, 1991, the Income-tax Officer passed an order under section 226(3) requiring the Manager of Bank of Baroda, Ahwa Branch, and Valsad Jhilla Sahakari Bank, Waghai, and the Deputy Conservator of Forests, Ahwa, to pay to him any amount held by them, for or on account of the petitioner-society. Similar order passed under section 226(3) was also served upon the Man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. In this case, we do not find any material on the basis of which it can be said that he had considered all the relevant aspects before imposing the conditions of making payment of 50 per cent. of the tax due for the assessment year 1983-84. It also appears that the Assessing Officer did not apply his mind to the effect of the conditions imposed by him which were likely to have on the working of the society. The facts disclose that the society could not pay even the modest amount of Rs. 91,974 within the time fixed by the Assessing Officer. As stated earlier, the petitioner-society is a co-operative society of labourers who contribute their labour and make some profit by cutting trees in the forest and selling the same. This aspect was als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income-tax and the order dated January 1, 1992, exhibit C-9, passed by the Income-tax Officer are required to be set aside and the two orders both dated December 13, 1991, passed under section 226(3) will have to be modified. Both the orders dated December 13, 1991, shall be treated as operative in respect of the fixed deposits only and not in respect of other amounts which banks or the Deputy Conservator of Forests may be holding for and on behalf of the petitioner-society. However, in order to safeguard the interest of the Income-tax Department, we think it proper to direct the petitioner to give an undertaking to this court not to encash the fixed deposits till the appeals filed by it with respect to the assessment years 1983-84 an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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