TMI Blog1998 (8) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Binod Kumar Bawri is shown as the owner of the property in question but in fact does not own the premises. The petitioners in this proceeding put up their claim on the property as the co-owners of "Bawri Mansion" and, therefore, questioned the above notice as illegal and without jurisdiction. According to the petitioners, in view of the family partition between the two main sharers, the plot of land and building in question fell to the share of the seven petitioners and after July 31, 1983, Sri Binod Kumar Bawri ceased to have any share in the property, namely, Bawri Mansion. The petitioners submitted income-tax return and in the said return the income receipt from the Bawri Mansion as co-owner was reflected and in support of this contention the petitioners referred to the intimation under section 143(1) of the Income-tax Act and appended the same to the writ petition. In the writ petition, the petitioners indicated about the income-tax proceeding initiated against Shri B. K. Bawri for recovery of the outstanding on account of dues receivable from him by the Department. It is also averred in the petition that the petitioners came to learn that Mr. Binod Kumar Bawri agreed to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment was so far made. The respondents also denied about the existence of any written agreement made by the assessee, Sri Binod Kumar Bawri, for payment of Rs. 1,00,000 per month mentioned in the writ petition. All along the rents received from the Bawri Mansion were assessed in the hands of Sri Binod Kumar Bawri and the assessment was confirmed in appeal by the Commissioner of Income-tax in the case vide order dated October 20, 1989, in Appeal No. 20-Shill of 1988-89 for the assessment year 1985-86. For the subsequent period also, the matter was treated as such, the respondents contended that petitioner No. 1, Sri Jagannath Bawri, who claimed to be the guarantor of the loan taken for the purpose of construction of a building by the loanee cannot become an owner of the building. The respondents in their affidavit stated that sufficient care was taken before issuance of the notice. In support of the assertion, the respondents referred to the information collected by them from the Shillong Municipality, the Revenue Department, namely, the Additional Deputy Commissioner, Revenue, the Executive Engineer, Electricity Board and the letter confirming over land by Sri Binod Kumar Bawri. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons the other modes of recovery. Under section 226(3)(i) the concerned officer may at any time or may from time to time, by notice in writing, require any person from whom money is due or may become due to the assessee or any person who holds or may subsequently hold money for or on account of the assessee, to pay to the 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 assessee in respect of arrears or the whole of the money when it is equal to or less than that amount. The mechanism set out in section 226(3) for recovery of arrears of tax vested in the authority is of distinct character. It is a jurisdiction which reaches out beyond the area normally enjoined by the officer in the matter of recovery of the arrear of tax. The jurisdiction is extended to a person who is not an assessee. The statute has chosen him because money is due or may become due to the assessee or any person who holds or may subsequently hold money for or on account of the assessee. The jurisdiction is not limited to issue noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 143(1)(a). At any rate, the assessments made are only protective assessments. Under the law it is open to the Department to make assessments on two persons in respect of the same income, where there is some ambiguity as to the liability to charge. Such assessments are made to protect the interest of the Revenue so much so, unless such protective or alternate assessment is made, assessment proceedings against the party finally found to be liable may become barred by time. It has now become an established practice that in the case of doubt as to the person who will be and deemed to be in receipt of the income, it is open to the Department to make protective or alternative assessment. In Lalji Haridas v. ITO [1961] 43 ITR 387, the Supreme Court observed at page 392 as follows : "In cases where it appears to the income-tax authorities that certain income has been received during the relevant assessment year but it is not clear who has received that income and prima facie it appears that the income may have been received either by A or by B or by both together, it would be open to the relevant income-tax authorities to determine the said question by taking appropriate procee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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