9911796707
TMI Blog1974 (2) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ted default, a certificate was issued to the Tax Recovery Officer under the provisions of section 222(1) of the Act. After the issue of the said certificate, the assessee died on October 13, 1970, leaving behind him the petitioners as his legal representatives. Thereafter, a warrant of attachment was issued by the Tax Recovery Officer to attach certain properties in the possession of the petitioners without mentioning the names of the petitioners as the defaulters in the notice. The said warrant of attachment was questioned before this court in Writ Petition No. 16 of 1972 by the petitioners. In the statement of objections filed on behalf of the revenue, it was submitted that the warrant would be withdrawn and steps would be taken to recove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abad High Court in the said case. The extent of the liability of legal representatives in respect of the income-tax due and payable by an assessee is set out in section 159 of the Act. Section 159(1) provides that where a person dies, his legal representative, shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased. Sub-section (3) of section 159 states that the legal representatives of the deceased shall for the purpose of the Act be deemed to be assessees and sub-section (6) provides that the liability of the legal representatives under section 159 shall, subject to the provision of sub sections (4) and (5), be limited to the extent to w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal is provided to the appropriate authority under rule 86 of Schedule II. The provisions of section 159, rules 85, 2, 3, 11 and 86 of Schedule II of the Act and rule 60 of the Rules, form a complete code regarding the rights, liabilities and remedies of a legal representative of a deceased defaulter against whom a tax recovery certificate had been issued during his lifetime in so far as the liability to pay the tax due by the defaulter is concerned, Sub-section (1) of section 159 taken along with rule 85 suggests that on the death of an assessee, the proceedings for recovery of the tax due from a defaulter against whom a certificate has been issued can be proceeded with against the legal representatives from the stage at which the defa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the scheme of the Act an assessee would become a defaulter only when he has not paid the tax mentioned in the notice of demand issued under section 156 within the time prescribed by section 220(1) of the Act. The illogicality lies in the fact that, whereas rule 85 treats such a legal representative as a defaulter forthwith, section 220(4) does not treat a person on whom a notice under section 156 has been issued until the time prescribed in section 220(1) has expired. A construction which will lead to such an absurd result should be avoided by courts. I am of the opinion that under the Act and the Rules framed thereunder, the procedure for recovery of tax due from a legal representative of an assessee has been simplified and to a larg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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