MOHAN WAHI vs COMMNR. INCOME TAX, VARANASI . — C.A. No. 2488/2001

Case Summary: Mohan Wahi v. Commissioner of Income Tax, Varanasi The Supreme Court set aside a property sale held for tax recovery, ruling that the Tax Recovery Officer cannot confirm a sale after tax demands have been reduced to nil. The Court held that service of a demand notice under Section 156 of the Income Tax Act is mandatory and foundational to recovery proceedings—non-service renders such proceedings invalid. Since demands against the firm UPCC had ceased to exist by 1996-1997 (a fact known to tax authorities), the 1998 confirmation was improper. This case analysis is maintained by casestatus.in based on publicly available court records.