Commissioner Of Income-Tax vs Shriram Prayagdas & Mahadeo Prasad on 20 January, 1982
In our view, that is not the correct reading of the ratio laid down by the Madhya Pradesh High Court in Shriram Prayagdas & Mahadeo Prasad (supra). In the facts of that case, the court held that the assessee was not liable to pay the income-tax dues of its predecessor firm and it was in order to get the buses attached by the government released that as a commercial expediency the assessee paid up the income-tax dues of its predecessor because the possession of the buses by the assessee was absolutely necessary for carrying on its business and the commercial expediency accordingly required the payment of income-tax dues for the release of its buses so that the assessee may carry on its business. Thereafter, the Madhya Pradesh High Court made the following observation :