Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 878 - HC - Income TaxRecovery of income tax dues - Priority of Charge - mortgage of property - Secured creditor priority over the dues payable to the Income Tax Department - attachments made by the Income Tax Department over the said property - Held that:- The issue is no longer res integra and has been considered in The Assistant Commissioner (CT) Versus The Indian Overseas Bank, M/s. Super Recording Co. Ltd. [2016 (12) TMI 373 - MADRAS HIGH COURT]. Question No.(i) was answered in favour of the financial institution which is a secured creditor having the benefit of the mortgaged property. Accordingly the question framed above has to be answered in favour of the petitioner Bank and against the 1st respondent and accordingly it is held that the petitioner Bank is entitled to priority of charge over the mortgaged property in question. Applicability of Section 281 (1) - void transfers - whether the mortgage created in favour of the petitioner's Bank could have been done only after obtaining approval from the Income Tax Department in terms of Section 281 (1)? - Held that:- This question was considered by the Division Bench of the High Court of Gujarat in the case of Tax Recovery Officer Vs. Industrial Finance Corporation of India [2012 (8) TMI 541 - Gujarat High Court ] as held that transfer of property which was for a valuable consideration and which was without notice of the pendency of the proceedings under the Sales-tax Act and therefore, the transfer falls under the exception created by the proviso to Section 33-A of the Madhyapradesh General Sales Tax Act, 1958. Thus, by applying the law laid down in the above mentioned documents question No.(ii) has to be answered in favour of the petitioner bank and against the respondents. Writ Petition is allowed and the attachment shall stand lifted and the 1st respondent shall intimate the Sub-Registrar, T. Nagar to delete the entries in the books maintained by him within a period of three weeks from the date of receipt of a copy of this order.
|