Bona fide transferee protection does not extend to recovery attachment under rule 16 of the Second Schedule.

Protection for a transferee for valuable consideration without notice under the proviso to section 281 of the Income-tax Act cannot be read into rule 16 of the Second Schedule. Section 281 targets transfers made to defeat the revenue during pending proceedings, while rule 16 governs private alienations after service of notice and attachment in recovery proceedings. Because the two provisions operate in distinct statutory fields and address different mischiefs, the section 281 proviso cannot be imported by implication into rule 16. A bona fide transfer for value therefore cannot defeat an attachment made under the recovery schedule.

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Issues: Whether the protection available under the proviso to section 281 of the Income-tax Act, 1961, to a transferee for valuable consideration without notice could be read into rule 16 of the Second Schedule so as to defeat the effect of an attachment made in recovery proceedings.

Analysis: Section 281 deals with transfers made with intent to defraud the revenue during the pendency of proceedings under the Act, while rule 16 of the Second Schedule operates in the separate field of private transfers made after service of notice and after attachment in recovery proceedings. The two provisions address different mischiefs and cannot be treated as overlapping or interchangeable. The protection given by the proviso to section 281 cannot, therefore, be incorporated by implication into rule 16. The amendment to section 281 also did not alter the distinct operation of the rule in relation to transfers after notice under rule 2 and attachment under the Schedule.

Conclusion: The proviso to section 281 does not apply to rule 16 of the Second Schedule, and the claim based on bona fide transfer for value could not defeat the recovery attachment.

Ratio Decidendi: A provision voiding fraudulent transfers under the Income-tax Act cannot be extended by implication to control a separate recovery-rule that voids private alienations after notice or attachment, because each operates in a distinct statutory sphere.

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