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2022 (7) TMI 798 - HC - Income TaxRecovery proceedings - attachment order - petitioner brought the properties of the borrower to public auction. The third respondent was the highest bidder - The petitioner presented the Sale Certificate before the second respondent for registration. Citing the attachment made by the Income Tax Department, the second respondent refused to register the same. Questioning the stand of the second respondent, this writ petition came to be filed. HELD THAT:- It is well settled that the rights of the secured creditor will prevail over crown debt. The legal position has been clarified in more than one decision. In this case, the mortgage was created in favour of the Bank on 07.12.2015. Attachment by Income Tax Department was on 14.12.2018. Since the mortgage was created earlier, the attachment made by the Income Tax Department subsequently will have to give way. The impugned proceeding is quashed. The writ petition is allowed. The second respondent is directed to register the petition mentioned Sale Certificate subject to fulfilment of the usual formalities. Consequently, connected miscellaneous petition is closed.
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