THIRD INCOME-TAX OFFICER, MANGALORE versus M. DAMODAR BHAT

THIRD INCOME-TAX OFFICER, MANGALORE versus M. DAMODAR BHAT

The Income-tax Officer is empowered to issue notices under s. 226(3) of the Income-tax Act, 1961 for recovery of tax and penalty assessed under the repealed Income-tax Act, 1922, without a requirement that the assessee must be 'in default'. The procedures of the new Act, as appropriate, apply to recoveries under s. 297(2)(j) mutatis mutandis, and the impugned notice was validly issued.

Parties
Appellant: THIRD INCOME-TAX OFFICER, MANGALORE; Respondent: M. DAMODAR BHAT
Jurisdiction
India
Judgment Date
06 September 1968
Procedural Posture
Civil Appeal / Appeal From Judgment and Order of Mysore High Court in Writ Petition No. 846 of 1965
Outcome
Appeal allowed; judgment of Mysore High Court set aside; writ petition dismissed with costs.
Legal Topics
Income Tax Recovery, Application of Repealed Laws, Statutory Interpretation
Taxation Law Income Tax Recovery Application of Repealed Laws Statutory Interpretation

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Parties

THIRD INCOME-TAX OFFICER, MANGALORE

Appellant

M. DAMODAR BHAT

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Order of Mysore High Court in Writ Petition No. 846 of 1965

Legal Issues

  1. 1 Whether s. 226(3) of the Income-tax Act, 1961 applies for recovery of tax assessed under the Income-tax Act, 1922.
  2. 2 If assessee must be 'in default' before notice under s. 226(3) can issue.
  3. 3 Effect of s. 297(2)(j) regarding recovery procedure.

Ratio Decidendi

The Income-tax Officer is empowered to issue notices under s. 226(3) of the Income-tax Act, 1961 for recovery of tax and penalty assessed under the repealed Income-tax Act, 1922, without a requirement that the assessee must be 'in default'. The procedures of the new Act, as appropriate, apply to recoveries under s. 297(2)(j) mutatis mutandis, and the impugned notice was validly issued.

Court Disposition

Appeal allowed; judgment of Mysore High Court set aside; writ petition dismissed with costs.

Orders

  • Writ petition No. 846 of 1965 dismissed.
  • Costs awarded to appellant.