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2019 (7) TMI 1375 - HC - Income TaxSale proclamation /auction of property by department to collect tax - Scheme for attachment and sale of immovable property of an assessee in default - limitation as prescribed in Rule 68B of the Schedule II - HELD THAT:- Appreciating the said Rule in the light of the purpose for which the same was inserted would show that under sub-rule (1), the legislature has now provided for the first time w.e.f. 1.6.1992 a time limit of a period of three years for sale of attached immovable property starting from the end of financial year in which the order giving rise to a demand of tax, interest etc has become conclusive. Sub-rule (4) of Rule 68B provides for the consequences of the immovable property not being sold within such time. As per this sub-rule in such a situation, the attachment order in relation to the said property would be deemed to have been vacated on the expiry of the time limit specified. In the present case, Rule 68B would apply with full force. The attachment of the said immovable properties was ordered way back in the year 1997. The sale proclamation which was made in February, 2019 was thus, hit by the period of limitation prescribed under such Rule. By virtue of sub-rule (4) of Rule 68B therefore, upon completion of the period of limitation, the attachment would be deemed to have been vacated. The auction sale, therefore, could not have been carried out. In the judgment in the case of Sanjay Khetan [2003 (12) TMI 42 - ALLAHABAD HIGH COURT], of course, the Allahabad High Court has observed that Rule 68B of the IInd Schedule would not apply to the certificates issued prior to 1.6.1992. To this extent, we are unable to persuade ourselves to follow the same line. Sub-rule (3) of Rule 68B makes it clear that the limitation prescribed under sub-rule (1) would apply also to past instances, with necessary modification provided therein which we have already discussed earlier. The consent given by the petitioner to sale the properties will not prevent her from pursuing their petition. Firstly, it was not an unconditional consent. In her letter dated 23.1.2019, she had raised the issue of owner charging of interest and or no-due certificate issued in the past. Her consent was thus subject to these objections. Further, the question of limitation would go to the root of the matter. If the auction was barred by limitation, the Department was prevented by law from carrying out the same. Under these circumstances, we are of the opinion that by virtue of Rule 68B of the IInd Schedule, the impugned sale proclamation is barred by limitation. The same must be quashed.
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