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2011 (2) TMI 931 - HC - Income TaxSham transaction - whether the department could proceed against the property of the assessee in default ignoring a transfer thereof during pendency of any proceedings without filing a suit - The Rules laid down in the Second Schedule to the Act contain procedure for recovery of tax by way of attachment and sale of the property - Rule 11(6) provides that if the Tax Recovery Officer decides the objection by which an objector is aggrieved, such objector can file a suit to establish his case and subject to result of such suit, the order of the Tax Recovery Officer is conclusive - Tax Recovery Officer is entitled to issue a certificate and recover the amount by way of attachment and sale of assessee's property - This contention is no doubt borne out from the judgment but it is explained on behalf of the revenue that even if declaration by the TRO that the transfer was void is ignored, the statutory declaration of the transaction being void cannot be ignored - after the amendment of section 281, the judgment of the Hon'ble Supreme Court is not bar to the revenue invoking section 281 in the circumstances mentioned therein and proceeding under section 222 by way of attachment and sale of assessee's property ignoring transfer in violation of section 281 subject of course to the statutory remedies of the affected party to raise objections or to file suit - Decided against the assessee
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