K K VARMA AND CO Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition, the petitioners are challenging the notice dated 14th January 1986 issued by the respondent No.7 - Income-tax Officer, Companies Circle I(6) Bombay under section 226(3) of the Income Tax Act 1961 calling upon the petitioners to pay to the respondent No.2 a sum of Rs.1,25,000/- towards the amount due from the defaulter viz. respondent No.5 - Shree Swastik Properties Pvt.Ltd., Bombay.

(2.) WE have heard learned counsel for both the sides. We have also perused the said order dated 14th January 1986. The challenge to the notice is on the ground that the petitioners have not received any amount on behalf of respondent No.5 and that they are holding the amount on their own account. The learned counsel for the petitioners submits that in that view of the matter, the respondent No.2 was not justified in passing such order dated 28th July 1986.

(3.) THE Income Tax Officer has given cogent reasons for holding that the statement of the petitioners that they did not hold any amount on behalf of the respondent No.5 was not correct and this conclusion is arrived at after perusing the documents filed by the petitioners. It is expedient to set out the reasons given by the Income Tax Officer in his order dated 8th April 1996 in support of the above conclusion