1982 (9) TMI 46 - HC - Income Tax

Summary

Issues involved: Writ petition under art. 226 of the Constitution seeking quashing of income-tax dues recovery proceedings and Commissioner's order, and restraining attachment and rent collection of property.

Judgment details:

1. The petitioners challenged the validity of recovery proceedings for assessment years 1949-50 to 1955-56, arguing that notices of demand were not served, rendering the proceedings null and void. The Department failed to prove service of notices, but the karta's conduct indicated awareness of proceedings since 1955. The karta's delayed assertion of non-service of notices in 1975 was deemed false and self-serving. The Court concluded that the Department likely followed standard practice of serving notices along with assessment orders, rejecting the karta's claim of non-service of notices.

2. The Court held that the karta's belated assertion of non-service of notices lacked credibility, considering the circumstances and the karta's vested interest in the property. The absence of a definitive assertion by the Department did not support the karta's claim. The Court emphasized that uncontroverted statements in affidavits are not automatically deemed true, especially when circumstances suggest otherwise. The Court found no grounds to accept the karta's claim of non-service of notices, deeming it an afterthought.

3. Consequently, the Court ruled that the recovery proceedings and the Commissioner's order were legal and did not warrant interference. The writ petition was dismissed with costs, and any stay order was lifted.

This judgment highlights the importance of timely and credible assertions in legal proceedings, emphasizing the need for evidence-backed claims rather than self-serving statements.