Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
HC held that secured creditor's rights take precedence over government tax dues, affirming a fundamental banking law principle. The court validated the auction sale of two helicopters to petitioner, dismissing income tax department's objections. The hypothecation agreement predated the tax department's prohibitory order, establishing secured creditor's priority rights. Tax authorities' failure to object despite prior auction notice (dated 06.09.2023) constituted tacit acceptance. Court emphasized that attachment order cannot impede auction sale when secured creditor's rights are superior. The sequential requirement of "attachment and sale" under Section 222(1)(a) remained unfulfilled by tax authorities who only issued prohibitory order without proceeding to sale. Petitions allowed, confirming petitioner's rightful acquisition through auction.
HC held that secured creditor's rights take precedence over government tax dues, affirming a fundamental banking law principle. The court validated the auction sale of two helicopters to petitioner, dismissing income tax department's objections. The hypothecation agreement predated the tax department's prohibitory order, establishing secured creditor's priority rights. Tax authorities' failure to object despite prior auction notice (dated 06.09.2023) constituted tacit acceptance. Court emphasized that attachment order cannot impede auction sale when secured creditor's rights are superior. The sequential requirement of "attachment and sale" under Section 222(1)(a) remained unfulfilled by tax authorities who only issued prohibitory order without proceeding to sale. Petitions allowed, confirming petitioner's rightful acquisition through auction.
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