MOHAN WAHI vs COMMNR. INCOME TAX, VARANASI .

The Supreme Court ruled that the attachment and sale of the house property owned by the late Bhagwati Prasad for recovery of income tax dues against the partnership firm UPCC was improper, as the undivided property of the brothers, particularly those not involved in the partnership, could not be attached. The Court emphasized that the assessments against UPCC were ex-parte and included penalties and interest, which were contested successfully before the Income-tax Appellate Tribunal. The Court held that the auction sale should not have been confirmed, thereby protecting the rights of the non-partner heirs.