TMI Blog1971 (4) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... red by RAMAPRASADA RAO J. - The petitioner is a limited company incorporated under the provisions of the Indian Companies Act and is having its office at Coimbatore. It placed certain orders with Messrs. Textool Company Ltd., Coimbatore, for the supply of ring frames and machinery according to certain noted specifications. The terms agreed upon between the petitioner on the one hand and Messrs. Textool Company Ltd. on the other, inter alia, were that a sum of Rs. 35,000 should be paid as advance and the balance against the arrival of invoices ; a stipulated time of delivery was prescribed and that erection should be carried out by Messrs. Textool Company Ltd. free of cost. We are not extracting or referring to the other terms of the contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acting the same : " We are in receipt of your above notice asking us to pay a sum of Rs. 3,45,000 standing to the credit of Messrs. Textool Company Ltd., in our books. It is true that the books show such a sum as due to that company, since they have supplied the frames to us. But the frames could not be commissioned due to some defective supply of some part or other defects. They have been reminded of these defects and we learn that they will shortly be sending their technicians to set right the matter so as to enable us to commission the frames. Until then, we are sorry that we may not be able to pay them anything. Till the defects are set right, they cannot demand any money for the supply. We shall certainly arrange to pay the amount to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remedies available to him and even sent the tax recovery certificate to the second respondent for recovery of the said amount claimed by him earlier under section 226 of the Income-tax Act, the petitioner has come up to this court for the issue of a writ of mandamus directing both the respondents to forbear from enforcing the recovery of the amount claimed pursuant to the provisions of the Income-tax Act, 1961. This is a case in which the revenue has raised a demand against the petitioner who is undoubtedly in the position of a garnishee as populary, understood. But the petitioner's case is that as at present no amount is due and payable by the petitioner to Messrs. Textools and as the liability is denied no process can be issued by the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i), read as a whole, lays, on the shoulders of the revenue, the responsibility to discover in cases like the one before us whether the statements made by the garnishee are false in any material particular. That has not been undertaken so far by the revenue and it is not very clear from the record whether all the materials were placed by the petitioner and the assessee to enable the Income-tax Officer to discover the falsity or otherwise of such particulars made available before him. In those circumstances and as we are not inclined in our discretion to engage ourselves in such an enquiry for discovery, we refrain from making the rule absolute but would give a direction instead so that the matter may be readverted to by the Income-tax Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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