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2013 (12) TMI 421 - HC - Income TaxRecovery proceedings without jurisdiction - Held that:- The power under Section 226(3) of the Act cannot be invoked for effecting recovery of a claim which is disputed, the letter written by Smt. Vaijanti Gupta to the Department on 18.12.2008 is nothing but making allegations against the petitioner and merely on an allegation made by an assessee, the proceeding under Section 226(3) of the Act cannot be initiated - Following P. Rajeswaramma v. Income-Tax Officer [1960 (1) TMI 30 - ANDHRA PRADESH HIGH COURT] - If a person to whom notice is sent denies that any money is due from him then the Income Tax Officer cannot take any further proceeding - The powers under Section 226 of the Act have not been given to the Assessing Officer or Tax Recovery Officer to adjudicate upon private disputes or to issue notices when there are no admission of liability to pay any amount to assessee - Section 226 of the Act is only a mode of recovery and sub-section (3) of Section 226 of the Act contains provision regarding collection from persons who owe money to assessee - The notices issued to the petitioner were wholly without jurisdiction and clearly indicate exercise of unauthorised and illegal power by the Tax Recovery Officer to harass the petitioner - Decided in favour of petitioner.
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