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2014 (4) TMI 411 - HC - Income TaxRecovery of tax dues from the buyer of property - defaulter sold certain properties to various persons including the petitioners. - Validity of transfer u/s 281 of Income Tax Act – Unpaid tax – Creation of Charge – Held that:- Judgment in T.R.O. v. Gangadhar Vishwanath Ranede [1998 (9) TMI 1 - SUPREME Court] followed wherein it was held that, "the Tax Recovery Officer is required to examine whether the possession of the third party is of a claimant in his own right or in trust for the assessee or on account of the assessee. If he comes to a conclusion that the transferee is in possession in his or her own right, he will have to raise the attachment. If the Department desires to have the transaction of transfer declared void under Section 281, the Department being in the position of a creditor, will have to file a suit for a declaration that the transaction of transfer is void under Section 281 of the Income-tax Act" The action of the TRO in declaring the transfer of property to be void was without jurisdiction. - no hesitation in striking down the order dated 8th November 1995 - Rule is made absolute accordingly – Decided in favour of petitioner.
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