9911796707
TMI Blog2008 (1) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... Chandrawali widow of late Shri Nand Ram, resident of Mohalla Sainian near Saini Athai, Hisar. In pursuance of the registered lease deed and with a view to get permanent and perpetual title over the said property three sale deeds were executed in favour of the petitioners on 4.3.2003, 4.3.2003 and 13.6.2003 for the aforementioned property at a price of Rs.4.5. lakhs per acre. 3. It is the case of the petitioners that at the time of buying the aforementioned property they had made enquiries from the office of the Registrar and had verified the antecedents and purchased the property by paying all the statutory dues of stamp duty etc. It is also the case of the petitioners that in order to get the finance and to further check the clear title of the property, the petitioners had also seen the Income Tax Clearance Certificate issued on 22.7.1999 by the Income Tax Department, Hisar under Section 230A(i) of the Act before the Sub Registrar, Hisar permitting the registration of the sale deed of the land in question by Smt. Chandrawali to Sh. Ram Niwas. The Income Tax Clearance Certificate was a pre-requisite of the law for the execution of the sale deed by Smt. Chandrawali in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no tax liability against them and the Income Tax Department is estopped by its own act and conduct from passing the impugned order, firstly because they did not pass any order for provisional attachment of the land in question before initiating the alleged proceedings for assessment of Income Tax liability of Smt. Chandrawali as provided under Section 281 (B) of the Act and secondly, because the Department itself issued the Income Tax Clearance Certificate on 22.7.1999 to Smt. Chandrawali and permitted her to sell the land in question to Ram Niwas. It is also stated by the counsel for the petitioners that the proviso to Section 281 of the Act covers the case of the petitioners as the land in question was purchased for adequate consideration and without notice of the pendency of proceedings against Chandrawali and with the previous permission of Assessing Officer. The petitioners have further alleged that they have received no reply in pursuance of their representation dated 11.8.2004 submitted to the respondents-authorities and instead the respondent-Department filed a civil suit in the Civil Court, Hisar against the petitioners for declaration to the effect that the Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and later on an order of attachment dated 7.6.2004 in respect of the said land was also issued to Tehsildar, Hisar requesting him not to allow the present owner of the properties to part with the possession of these properties as the transfer/sale dated 22.7.1999 has been treated as null and void. It has been admitted that the Department has filed a Civil Suit in the Civil Court at Hisar for declaring the sale of immovable property made on 22.7.1999 by Smt. Chandrawali in favour of Ram Niwas as void and the same is pending and therefore the Tax Recovery Officer/Income Tax Officer is entitled to attach and sell the agriculture land which has been fraudulently transferred vide sale deed dated 22.7.1999 by Smt. Chandrawali as the socalled transfer made to defraud the tax recovery. 7. The petitioners have filed replication controverting the plea taken by the respondent-Department on facts and law by stating that the order of attachment issued by the respondent- Department wherein the authorities have acted beyond powers vested in them by law, affecting the petitioners was passed on 7.6.2004 and therefore the writ petition has been filed within the period of limitation. The plea of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We find considerable force in the arguments raised by counsel for the petitioners. A perusal of Annexure P-3 i.e. Income Tax Clearance Certificate issued by the Department in favour of Smt. Chandrawali for the sale of land in question to Sh. Ram Niwas (i.e. from whom the petitioners have purchased the land in question) clearly indicates that no liability was outstanding against Smt. Chandrawali on the date of issuance of the said Income Tax Clearance Certificate. It is also not contested by the Department that the petitioners are the bona fide purchasers of the land in dispute. They have purchased the land for a consideration and after making due enquiry about the clear title of the vendor. Section 281 subsection (1) provides that if during the pendency of any proceeding under this Act or after the completion thereof, but before the service of notice under Rule 2 of the Second schedule, any assessee creates a charge on or parts with the possession of, any of his assets in favour of any other person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the assessee as a result of the completion of the said proceeding. Proviso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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