9911796707
TMI Blog2002 (6) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... Circle II Madurai, to various companies, the names and addresses of which are contained in the list attached to exhibit P-1, which includes the second respondent herein. Exhibit P-1 is a garnishee proceeding initiated for recovery of arrears of income-tax due from the third respondent, i.e., the petitioner's employer-company. The petitioners are challenging the said notice on the ground that the amounts to be paid by the second respondent to the third respondent are to be utilised towards payment of salary to the petitioners and if income-tax is recovered by the Income-tax Department by recovering the amount due by the second respondent to the third respondent, the petitioners' rights are affected. The petitioners rely on the protection con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided in this section. (2) If any assessee is in receipt of any income chargeable under the head 'Salaries' the Assessing Officer or Tax Recovery Officer may require any person paying the same to deduct from any payment subsequent to the date of such requisition any arrears of tax due from such assessee, and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Central Government or as the Board directs: Provided that any part of the salary exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 (5 of 1908), shall be exempt from any requisition made under this sub-section. (3)(i) The Assessing Officer or Tax Recovery Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and there is nothing unusual about exhibit P-1. The petitioners may be the employees of the third respondent and the averment of the petitioners that the third respondent may owe arrears of salary to the petitioners also may be true. However, unless the petitioners establish their claim of priority over income-tax dues, the petitioners cannot stall the recovery proceedings initiated under section 226(3) of the Income-tax Act. There is nothing on record to indicate that the petitioners have got any order under the Payment of Wages Act or from any other forum showing the specific amount of arrears due to them from the third respondent so as to enable the petitioners or any one of them to attach the amounts receivable by the third respondent f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The attachment is neither on the salary of the petitioners nor is the notice served on the employer of the petitioners. Therefore, the proviso to section 226(2) has no application and the petitioners cannot claim any immunity from attachment under the proviso to sub-section (2) of section 226. As already stated exhibit P-1 is in the nature of recovery proceedings initiated against the defaulter company, the assessee, which is the third respondent. The amount payable by the second respondent to the third respondent admittedly is under a contract between them for supply of security personnel and whatever be the basis of payment for supply of security personnel, it is still payment of contract amount by the second respondent to the third resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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