9911796707
TMI Blog1967 (4) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... om the respondent the sum of Rs. 20,000 in pursuance of his notices dated June 18, 1959, and March 21, 1961, issued under section 46(5A) of the Indian Income-tax Act, 1922. These notices came to be issued in the following circumstances : One, T. S. Baliah, a cine-artist, was apparently in arrears of income-tax. The III Additional Income-tax Officer sent a letter dated June 18, 1959, to the respondent saying : " I understand that you have engaged the services of Shri T. S. Baliah for a film being produced by you. As the above gentleman is in arrears of income-tax, I herewith enclose a notice under section 46(5A) of the Income-tax Act, attaching the remuneration payable by you to Shri Baliah. Please credit to the Government account all am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act. The notice is in the same form except that the sum to be recovered had increased to Rs.86,111-12-0. The respondent replied on March 25, 1961, saying that " there are no payments due and payable to Shri T. S. Baliah, cine-artist, as on the date of receipt of your letter. " The respondent enclosed a statement of account which showed that on March 28, 1960, a cheque for Rs. 7,000 was given to T. S. Baliah ; on February 9, 1961, cash amounting to Rs. 6,000 was paid to him, and again on March 18, 1961, cash amounting to Rs. 7,000 was paid to him. The respondent also enclosed a copy of the contract with T. S. Baliah. The contract shows that there was an agreement between T. S. Baliah and the respondent, signed on March 28, 1960, whereby T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y notice in writing (a copy of which shall be forwarded to the assessee at his last address known to the Income-tax Officer) require any person from whom money is due or may become due to assesse or any person who holds or may subsequently hold money for or on account of the assessee to pay to the Income-tax Officer, either forthwith upon the money becoming due or being held or at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due by the taxpayer in respect of arrears of income-tax and penalty or the whole of the money when it is equal to or less than that amount. The Income-tax Officer may at any time or from time to time amend or revo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Officer. " The learned counsel for the appellant contends that section 46(5A) applies in four sets of circumstances : (1) when money is due from a person to the assessee ; (2) when money may become due to the assessee ; (3) when a person holds money for an assessee ; and (4) when a person may hold money on account of the assessee. He says that there is no reason for cutting down the words in categories (2) and (4) ; the words are plain and they do not suggest that at the time of notice a relationship, which may result in money being owed or being held on account of the assessee, should subsist. In our view, if the assessee has no subsisting relationship with a person it would be speculative to think that that person m ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
