Voidability of transfers during tax proceedings protects recovery unless made for adequate consideration or authorised beforehand. Transfers or charges of specified non stock assets by an assessee during pendency of, or after completion of, proceedings under the Act but before service of a Tax Recovery Officer's notice are void against claims for tax or other sums; modes include sale, mortgage, gift, exchange or other transfers. The rule excludes transactions made for adequate consideration without notice or those effected with prior permission of the Assessing Officer. The provision applies where the tax or sum payable and the value of assets exceed specified monetary thresholds and lists covered assets including land, buildings, machinery, shares, securities, bank fixed deposits and virtual digital assets.
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 transfers during tax proceedings protects recovery unless made for adequate consideration or authorised beforehand.
Transfers or charges of specified non stock assets by an assessee during pendency of, or after completion of, proceedings under the Act but before service of a Tax Recovery Officer's notice are void against claims for tax or other sums; modes include sale, mortgage, gift, exchange or other transfers. The rule excludes transactions made for adequate consideration without notice or those effected with prior permission of the Assessing Officer. The provision applies where the tax or sum payable and the value of assets exceed specified monetary thresholds and lists covered assets including land, buildings, machinery, shares, securities, bank fixed deposits and virtual digital assets.
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