Recovery of Income Tax Arrears from Auctioned Property Untenable: Kerala HC

Job G.Oommen Vs Union of India (Kerala High Court) Kerala High Court held that recovery of tax arrears by income tax department from property that was already auctioned by Kerala General Sales Tax Act, 1963 [KGST] to realize tax payable under KGST is untenable in the eye of law. Facts- One late P.N.Madhavan Pillai was the proprietor of M/s.Mohandas Cashew Factory, Arakkal, Kollam District. He was an assessee under the provisions of the KGST Act and had arrears in excess of Rs.58 lakhs for the period from 1995 onwards. He was also in arrears with respect to Cashew Workers Welfare Fund dues for ...