JUDGMENT
S.P. Goyal, J.
1. To recover the arrears of tax due from Hindustan Embroidery Mills (P.) Ltd., respondent No. 1, and Narain Cold Storage Private Ltd., respondent No. 2, the Tax Recovery Officer attached the amounts of Rs. 1,00,000 and Rs. 1,09,528.20 lying to the credit of Laxmi Narain Public Charity Trust, respondent No. 3, with respondent No. 2, Rs. 93,400 with respondent No. 1, Rs. 1,000 lying deposited with the Post Master, Golden Temple, Amritsar, and 100 fully paid-up shares of respondent No. 2. The respondents filed objections that the said amounts belonged to the trust and not to the assessee and, as such, were not liable to attachment for satisfaction of the tax liabilities of respondents Nos. 1 and 2 which were allowed by the Tax Recovery Officer and the said properties were released, vide order dated December 22, 1967. Aggrieved thereby, the Union of India filed this suit for a declaration that the properties in dispute, in fact, belong to Narain Singh Uppal, deceased, and that the trust created by him was a bogus one designed to delay and defeat the claim of the Revenue.
2. The suit was contested by the defendants who raised several legal pleas and reiterated that the trust was a genuine one and owner of the properties in dispute. Upholding the pleas of the defence, the trial court dismissed the suit. Hence, this appeal by the Union of India.
3. The trial court held the suit to be barred on the ground that the existence and validity of the trust had been upheld by the appellate authority in the assessment proceedings. This was a wholly erroneous view. Against the order of the Tax Recovery Officer, the remedy of suit is specifically provided in the rules itself. The suit by the Union of India challenging the order of the Tax Recovery Officer was, therefore, competent though it may be liable to be dismissed on the ground that the validity of existence of the trust had been upheld between the parties by the highest authority under the Income-tax Act. The finding of the trial court on issue No. 2 is accordingly reversed.
4. For challenging the judgment of the trial court on merits, the sole ground urged was that the Laxmi Narain Public Charity Trust was not a genuine trust. It is, however, not disputed that in the assessment proceedings between the parties, the Tribunal, vide order dated November 10/11, 1970, exhibit D.W. 16/241, upheld the existence and the validity of the said trust. The Revenue never got any reference made to the High Court against that order for challenging the finding of the Tribunal. The finding recorded by the Tribunal is thus final between the parties and binding on the Tax Recovery Officer. If that is so, then no fault can be found with the impugned order of the Tax Recovery Officer whereby the attached properties were ordered to be released.
5. Consequently, this appeal must fail and is hereby dismissed but without any order as to costs.