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2017 (12) TMI 1132 - HC - Income TaxTax Recovery Officer jurisdiction to declare the transaction of transfer of property as null and void under section 281 in the proceedings under rule 16 of the Second Schedule to the Act - Held that:- The Revenue has to institute a suit seeking such declaration from a civil court. The contention raised by learned advocate Mr.Bhatt that the Tax Recovery Officer was justified in declaring the transfer as null and void as the same was made between husband and wife to defraud the Bank does not merit acceptance in view of the law enunciated in the aforesaid judgments. As observed by this Court in the decision rendered in the case of Karsanbhai Gandabhai Patel (2014 (4) TMI 411 - GUJARAT HIGH COURT) section 281 does not create any machinery for the Revenue authorities to entertain dispute and declare the transaction to be void for which purpose, only civil suit would lie. We, therefore, unhesitatingly, set aside the impugned order dated 26.05.2017. However, the right of the respondent authorities to seek the declaration of the transfer as null and void under section 281 of the Income Tax Act, is not taken away and if they so desire, initiate appropriate proceedings in accordance with law seeking such declaration. The petition is allowed accordingly.
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