https://www.taxtmi.com/caselaws?id=355457 A secured creditor's statutory priority under Section 31B of the SARFAESI Act prevails over a later attachment and recovery action by the Income Tax Department against mortgaged property, so the earlier security interest is not defeated by Government dues. The mortgage is also protected under the proviso to Section 281(1) of the Income-tax Act, 1961 where it is supported by adequate consideration and no notice of pending income-tax proceedings or tax liability was shown before its creation. On that basis, the bank's secured interest was treated as effective against the departmental attachment, and the revenue entries were directed to be lifted. en-us Thu, 25 Jan 2018 00:00:00 +0530 Wed, 14 Feb 2018 14:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=355457 A secured creditor's statutory priority under Section 31B of the SARFAESI Act prevails over a later attachment and recovery action by the Income Tax Department against mortgaged property, so the earlier security interest is not defeated by Government dues. The mortgage is also protected under the proviso to Section 281(1) of the Income-tax Act, 1961 where it is supported by adequate consideration and no notice of pending income-tax proceedings or tax liability was shown before its creation. On that basis, the bank's secured interest was treated as effective against the departmental attachment, and the revenue entries were directed to be lifted. Case-Laws Income Tax Thu, 25 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=355457