Section 281 does not empower tax officers to void a sale deed; validity must be tested through proper legal proceedings.

Section 281 of the Income-tax Act, 1961 was treated as a declaratory provision and not as a source of adjudicatory power for the Income Tax Officer to decide the validity of a transfer. A sale deed could be declared void against the tax claim only through proceedings taken in accordance with law, including a suit for declaration under section 53 of the Transfer of Property Act, 1882. The authority therefore could not itself pronounce the conveyance void merely because tax proceedings were pending, and the impugned order was unsustainable.

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Issues: Whether the Income Tax Officer had jurisdiction under section 281 of the Income-tax Act, 1961 to declare the sale deed void.

Analysis: Section 281 was treated as a declaratory provision and not as one creating an adjudicatory mechanism for the Income Tax Officer to determine the validity of a transfer. The legal position applied required that, if a transfer was to be declared void as against the tax claim, appropriate proceedings had to be taken in accordance with law, including a suit for declaration under section 53 of the Transfer of Property Act, 1882. In view of that binding position, the authority could not itself pronounce the conveyance void on the basis of the pending tax proceedings.

Conclusion: The Income Tax Officer had no jurisdiction to declare the sale deed void under section 281 of the Income-tax Act, 1961, and the impugned order was unsustainable.

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