Fraudulent transfer of property against tax dues is void unless made in good faith with adequate consideration. A transfer or creation of charge over property becomes void against Government tax claims where, after an amount has become due, the person disposes of property by sale, mortgage, exchange or any other mode of transfer with the intention of defrauding Government revenue. The provision applies to property in the person's possession or ownership and extends to any charge created in favour of another person. Such transfer or charge is ineffective against claims for tax or any other sum payable by that person. The proviso preserves transfers or charges made for adequate consideration, in good faith, and without notice of pending proceedings or of the tax or other sum payable.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Fraudulent transfer of property against tax dues is void unless made in good faith with adequate consideration.
A transfer or creation of charge over property becomes void against Government tax claims where, after an amount has become due, the person disposes of property by sale, mortgage, exchange or any other mode of transfer with the intention of defrauding Government revenue. The provision applies to property in the person's possession or ownership and extends to any charge created in favour of another person. Such transfer or charge is ineffective against claims for tax or any other sum payable by that person. The proviso preserves transfers or charges made for adequate consideration, in good faith, and without notice of pending proceedings or of the tax or other sum payable.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
