TMI Blog2000 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ma theatre known as "New Cinema Theatre" both at Cuddalore. He was assessed to income-tax for the assessment year 1976-77 and thereafter. It is stated that on receipt of the notice impugned, the petitioner made enquiry with the officials, and she came to know that her father was liable to pay income-tax arrears of a sum of Rs. 67,575 with interest for the assessment years 1976-77 to 1983-84. The petitioner is challenging the notice on the ground that her father was assessed to income-tax ex parte for the assessment year 1976-77 and the same was continued up to 1983-84, and her father also made certain payments and when her father committed defaults in the payment of instalments, there were demands requiring the father of the petitioner to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be quashed. Learned counsel for the petitioner also submitted that the petitioner is the legal representative of the deceased assessee, but she was not served with any notice and, hence, on that account also the proceedings should be quashed. Mr. C. V. Rajan, learned senior standing counsel appearing for the Department, submitted that the sale proceedings were initiated within the time stipulated in rule 689(1) of the Second Schedule to the Income-tax Act. He further submitted that the proceedings are being continued against the petitioner as a legal representative of the deceased assessee from the stage at which the proceedings were left on the date of the death of the defaulter. I have carefully considered the submissions of learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1992, then, June 1, 1992, is statutorily fixed as the date on which the demand became conclusive. The reading of sub-rule (1) of rule 68B shows that the period of three years provided under the said Act would commence from the end of the financial year in which the order which gave rise to the demand of tax has become conclusive. In my view, rule 68B(3) should be read along with rule 68B(1) of the Second Schedule to the income-tax Act as rule 68B(3) deals with cases where the attachment of the property was made prior to June 1, 1992, and the respondents are justified in calculating the period of three years from the end of the financial year in which the order which gave rise to the demand of tax became conclusive. Sub-rule (3) of rule 68B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he affidavit filed in support of the petition and the counter affidavit and I find that the petitioner was also issued notice and it was served on the petitioner demanding payment of arrears of tax with interest. Therefore, I hold that there is no violation of the principles of natural justice. The result is the writ petition is liable to be dismissed and, accordingly, it is dismissed. However, considering the fact that the petitioner is the legal representative of the deceased defaulter, I am of the view that the petitioner should be given some time to clear off the arrears of tax. Accordingly, the petitioner is given six months time from the date of the receipt of the order to clear off the arrears and if the amount is not paid within t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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