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2019 (5) TMI 858 - HC - Income TaxRight in property purchased of purchaser & landlord - property under development by developer - attachment orders u/s 281B passed by Income tax department against developer by orders dated 07.10.2011 - Tax Recovery proceedings - ownership of property - HELD THAT:- Insofar as the challenge to the orders dated 07.10.2011 passed under Rule-48 is concerned, the main contention of the petitioners is that neither on the date of the provisional order of the attachment nor on the date of order of attachment passed under Rule 48, was the sixth respondent the owner of the property and that therefore the orders of attachment and the consequent directions issued under Section 22-A of the Registration Act, 1908 were null and void. Under Rule 68-B (1) of the Second Schedule to the Act, 1961, no sale of immovable property can be made after the expiry of three years from the end of the financial year in which the order giving rise to a payment of any tax, interest, fine, penalty or any other sum, for the recovery of which the immovable property has been attached. The period of three years from the date of the order of attachment had already passed. The properties attached were not brought to sale within three years. Therefore, the orders of attachment dated 07.10.2011, have lost their potency. In addition, the counter proceeds on the footing that what was ordered to be attached was the property that was the subject matter of development agreement. In other words, whatever was the subsisting interest that the sixth respondent had on the date of the order of the attachment alone could be the subject matter of attachment. The petitioners in the first writ petition appear to have purchased the individual plots, even before the provisional order of attachment was passed. On both grounds viz., (a) that under Rule 68-B (1), no further steps were taken within three years and (b) that on the date of order of attachment, the petitioners in the first writ petition had already purchased the properties, the petitioners are entitled to succeed. W.P. allowed.
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