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2017 (1) TMI 880 - HC - Income TaxNon registering the Certificate of Sale - public auction - Attachment orders - recovery proceedings - original owner has been prohibited and restrained from transferring or charging the property in question for the alleged dues with interest under section 220(2) - Held that:- When the petitioner is a bonafide purchaser of the property in question, which has been purchased by him in a public auction held and conducted pursuant to the order passed by the Debt Recovery Tribunal and when the order of attachment has been passed subsequently, appropriate authority is required to be directed to register the Certificate of Sale in favour of the petitioner. Therefore, there is no justification in not registering the Certificate of Sale issued by the Debt Recovery Tribunal and informing the petitioner to obtain No Objection Certificate from the Income Tax Department on the ground that pursuant to the communication / order dated 18/11/2011 issued by the Income Tax Department, the property in question is under attachment. As held by the Division Bench of this court in the case of Asset Reconstruction Company (India) Ltd. (2011 (9) TMI 1087 - GUJARAT HIGH COURT ) and even not disputed by the learned counsel appearing on behalf of the Income Tax Department, for the dues of the Income Tax Department, Income Tax Department cannot claim priority and/or cannot claim first charge over the dues of the secured creditor. There is no justification in refusing to register the Certificate of Sale with respect to property in question which the petitioner has purchased on payment of full sale consideration in an auction held and conducted by the on payment of full sale consideration pursuant to the for the dues of the Bank and pursuant to the order passed by the Debt Recovery Tribunal.
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