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2014 (5) TMI 896 - HC - Income TaxJurisdiction of the ITO u/s 281 of the Act – Sale deed declare as void – Held that:- Following Tax Recovery Officer Versus Gangadhar Vishwanath Ranade (deceased) [1998 (9) TMI 1 - SUPREME COURT] - Section 281 is only a declaratory provision and is not an adjudicatory provision entitling the authority to declare a document as a void document - section 281 merely declared what the law was as to that during the pendency of any proceeding under Income Tax Act in the event any assessee creates a charge or parts with the possession by way of sale, mortgage, exchange or by any other mode of transfer, such transfer would be void as against any claim in respect of any tax payable by the assessee - section 281 did not prescribe any adjudicatory machinery for deciding any question which may arise u/s 281 and that in order to declare a transfer as fraudulent u/s 281, an appropriate proceeding in accordance with law was required to be taken u/s 53 of the Transfer of Property Act - the ITO had exceeded its jurisdiction in adjudicating the matter u/s 281 of the Act – thus, the ITO had no jurisdiction to declare the sale deed as void – decided in favour of Assessee.
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