https://www.taxtmi.com/caselaws?id=7571 Government priority for income-tax arrears can be enforced only against assets still belonging to the judgment-debtor and remaining in the custody of the executing court. A mere attachment by the Collector under the Income-tax Act does not, by itself, defeat the decree-holder once the court has ordered distribution and the sale proceeds have been paid over. The decisive point is timing: the Government must move the executing court before the proceeds are disbursed, because after payment the decree-holder's rights prevail. The commentary therefore states that priority cannot be asserted to recover execution money already distributed to the decree-holder. en-us Sun, 07 Sep 1969 00:00:00 +0530 Mon, 02 Mar 2009 13:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7571 Government priority for income-tax arrears can be enforced only against assets still belonging to the judgment-debtor and remaining in the custody of the executing court. A mere attachment by the Collector under the Income-tax Act does not, by itself, defeat the decree-holder once the court has ordered distribution and the sale proceeds have been paid over. The decisive point is timing: the Government must move the executing court before the proceeds are disbursed, because after payment the decree-holder's rights prevail. The commentary therefore states that priority cannot be asserted to recover execution money already distributed to the decree-holder. Case-Laws Income Tax Sun, 07 Sep 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7571