Recovery rules for attached immovable property prevail over private transfers, though conditional interim relief may still be granted on a triable issue.

Section 281 of the Income-tax Act was read as applying during pendency of proceedings under the Act, but the recovery provisions in the Second Schedule were treated as a specific code for attached immovable property. Once notice under rule 2 is served and attachment is made, the attachment relates back to the date of notice, and a private transfer of the property cannot override the department's claim. Even so, an arguable issue under rule 16(2) and a prima facie case could justify conditional interim relief pending trial.

---

---

Issues: Whether section 281 of the Income-tax Act applied to recovery proceedings and whether, in the case of immovable property attached under the Second Schedule, the transferees were entitled to interim injunction on the footing that the transfer preceded the attachment and that a triable issue existed.

Analysis: Section 281 was construed as operating during pendency of proceedings under the Act and not as confined to assessment proceedings alone. At the same time, the rules governing recovery of immovable property under the Second Schedule, especially rules 2, 16, 48 and 51, were held to deal with a specific field: once notice under rule 2 is served and attachment is made, the attachment relates back to the date of service of notice and private transfers of attached immovable property cannot prevail against the department's claim. The Court held that the section and the rules do not operate on the same field, and that the recovery rules govern the case of attached immovable property. Nevertheless, in view of the arguable question on the operation of rule 16(2) and the existence of a triable issue, the plaintiffs had shown enough for interim relief, though only on conditions.

Conclusion: The transferees were not entitled to succeed on the broad construction of section 281, but they did establish a sufficient prima facie basis for conditional interim injunction pending trial.

Final Conclusion: The appeals were allowed only to the limited extent of granting interim protection on deposit conditions, while preserving the department's right to proceed in accordance with the recovery provisions.

Ratio Decidendi: Where a specific recovery provision governing attached immovable property applies, a subsequent private transfer cannot defeat the attachment, and interim relief may still be granted only if a genuine triable issue and prima facie case are shown.

---