KALYAN MILLS LTD. vs UNION OF INDIA & ORS.

The Supreme Court ruled that under Section 46(5A) of the Income Tax Act, the Union of India could not enforce a money decree against the appellant company except for amounts held in deposits for the assessee company. The Court held that the appellant's counter-claim rendered the attachment order ineffective, necessitating civil court adjudication. Consequently, the decree for the appointment of a receiver was upheld to recover the owed amount for the Union of India.