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2017 (1) TMI 1158 - HC - Income TaxRecovery of dues - Transaction between the petitioner and the original owners declared as void in exercise of powers under Section 281(1) - transfer made for adequate consideration - denial of natural justice - Held that:- If the transferee is in a position to point out that such transfer was made for adequate consideration and without notice of the pendency of any proceedings under the Act, or without notice of such tax or other sum payable by the assessee, such a transfer is not required to be declared as void. Therefore, if the opportunity would have been given to the petitioner transferee, in that case, the petitionertransferee could have pointed out and / or satisfied respondent no.1 that the sale in favour of the petitioner was for adequate consideration and without notice of pendency of proceedings under the Act or without notice of such tax or other sum payable by the assessee. At this stage, it is required to be noted that it is not the case on behalf of the respondent no.1 that the sale in favour of the petitioner was either without adequate consideration and / or petitioner-transferee had knowledge / notice of pendency of any proceedings under the Act against the original assessee or petitioner-transferee had in knowledge / notice as such tax such tax or other sum payable by the assessee. Under the circumstances, the impugned order is absolutely in breach of principle of natural justice and same deserves to be quashed and set aside on the aforesaid ground alone. Thus the impugned order passed by the respondent no.1 declaring the sale between the petitioner and the respondent no.2 with respect to property situated at Plot No. 48/B, Sector 19, Gandhinagar as void in exercise of powers under Section 281(1) of the Act is hereby quashed and set aside
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