MADAN LAL LOHIA vs ASSISTANT CONTROLLER & ORS.

The Supreme Court addressed the applicability of Section 73(5) of the Estate Duty Act, 1953, in relation to garnishee proceedings. The Court held that the Assistant Controller's imposition of a penalty under Section 73(5) was valid only if the appellant had acted in contravention of a lawful demand. The Court found that the appellant's claim for refund was based on a bona fide mistake of law, thus partially allowing the appeal and setting aside the penalty imposed.