2000 (10) TMI 23 - HC - Income Tax

Summary

The High Court of Madras ruled that court sales are not subject to Chapter XX-C of the Income-tax Act, 1961. The purpose of Chapter XX-C is to prevent tax evasion in property dealings, but it does not apply to court sales where property value is determined through public auction and approved by the court. The court's decision on the property price in a sale cannot be questioned by income-tax authorities. The judgment affirmed that Chapter XX-C does not apply to court sales, as previously held in the case of Hindustan Petroleum Corporation Ltd. v. Elite Optical Industries. The writ appeal was dismissed.