TMI Blog2020 (10) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... the TNGST Act provides that all charges or transfers made by the dealer during the pendency of any proceedings under the Act, shall be void. The intention to defraud the revenue requires to be derived from the manner in which the defaulter transfers the title of the property. When the transfer of title of the property is made within a reasonably short period from the knowledge of the tax arrears or whenever such a transfer of title is done among the family members of the defaulter, there can be a strong presumption that such transfer has been made to defraud the revenue. Since the defaulter had transferred the property in favour of his brother's wife, by appointing his own brother as the Power Agent to act on his behalf and such a sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the attachment made in the subject property. The facts, as revealed in the said letter, states that one Thiru.T.C.Wilson (late), proprietor of M/s.New Nelson Watch Company, was in arrears of sales tax for the assessment year 1996-97 under TNGST Act, 1959, to the tune of ₹ 1,75,830/-. The order dated 26.02.1999 levying tax and penalty was communicated to the assessee and served on him on 19.04.1999. In this background, the assessee had sold the subject property to the petitioner on 27.01.2000 and the petitioner herein had subsequently settled the property in favour of her son on 25.04.2003. The encumbrance of the charge over the subject property was recorded in the registers of the Registration Department on 10.09.2007. 4. The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate consideration and without notice of the pendency of such proceeding under this Act or, as the case may be, without notice of such tax or other sum payable by the dealer; or (ii) with the previous permission of the assessing authority. 7. As per the provision, any transfer of title or creation of a charge by the dealer with an intention to defraud the revenue, is deemed to be void. The exceptions to such a provision is only when the charge or transfer is made for adequate consideration and without notice of the pendency of the tax proceedings or when the previous permission of the assessing authority is obtained. The intention of the dealer to defraud the revenue, is the qualifying clause, in order to render the transfer of titl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the dealer during the pendency of any proceedings under the Act, shall be void. The intention to defraud the revenue requires to be derived from the manner in which the defaulter transfers the title of the property. When the transfer of title of the property is made within a reasonably short period from the knowledge of the tax arrears or whenever such a transfer of title is done among the family members of the defaulter, there can be a strong presumption that such transfer has been made to defraud the revenue. 11. Since the defaulter had transferred the property in favour of his brother's wife, by appointing his own brother as the Power Agent to act on his behalf and such a sale has happened within six months from the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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