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2017 (9) TMI 1592 - HC - Income TaxRecovery of tax - Certain transfers to be void - Petitioner’s application for permission u/s 281 - guard against fraudulent transfers designed to defeat recovery by the revenue - Held that:- The section is asset-specific and transfer-or charge-specific. The section demands, above all, precision. An application is for prior permission to create a charge or effect a transfer in respect of a defined asset. Such an application cannot be disposed of by resorting to generalities (“likelihood”, “huge demands”, “might be revoked”, etc). There is no room in considering an application under Section 281 for a response that is speculative, predicated on imponderables and unknowns such as litigation outcomes, or on suppositions that all stay orders obtained by an assessee are bound to be vacated and an assessee’s appeals lost. Nothing in our experience suggests this to be remotely true. We have considered Mr. Pardiwala’s submission in regard to the tenability of the impugned order. We agree with him that it cannot be sustained for the precise reasons we have outlined, and which we find unacceptable. There is no discussion on the merits of any particular application, proposed transfer or individual asset. Hence, keeping the contentions of both sides open, and without rendering a decision on the merits of the application by the Petitioner, we will set aside the impugned order and direct the 1st Respondent to consider the Petitioner’s application afresh, uninfluenced by the previous order and subject to certain conditions that we will set out hereafter. The 1st Respondent will consider the Petitioner’s application (including subsequent correspondence) under Section 281 de novo by 17th November 2017 (we have extended time because of the intervening Diwali holidays). The 1st Respondent will indicate whether he requires any clarifications or further documents or materials from the Petitioner
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