Voidability of post-proceeding asset transfers bars charges or transfers against tax claims unless adequate consideration or prior permission. Transfers made by an assessee during pendency or after completion of proceedings but before service of notice under rule 2 of the Second Schedule that create a charge on, or part with possession of, assets are void as against claims for tax or other sums payable arising from that proceeding or otherwise, subject to exceptions for adequate consideration without notice and for prior permission of the Income-tax Officer; the section applies where tax and asset values exceed statutory thresholds and defines 'assets' to include land, building, machinery, plant, shares, securities and bank fixed deposits.
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.
Voidability of post-proceeding asset transfers bars charges or transfers against tax claims unless adequate consideration or prior permission.
Transfers made by an assessee during pendency or after completion of proceedings but before service of notice under rule 2 of the Second Schedule that create a charge on, or part with possession of, assets are void as against claims for tax or other sums payable arising from that proceeding or otherwise, subject to exceptions for adequate consideration without notice and for prior permission of the Income-tax Officer; the section applies where tax and asset values exceed statutory thresholds and defines "assets" to include land, building, machinery, plant, shares, securities and bank fixed deposits.
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