https://www.taxtmi.com/caselaws?id=365284 A transfer for adequate consideration in favour of a purchaser without notice of pending tax proceedings or tax liability cannot be treated as void under Section 281 of the Income-tax Act unless the statutory preconditions are proved, including service of the requisite recovery notice under the Second Schedule. Where the record did not establish that foundational notice and the purchase was made after title verification and due diligence, the declaration that the registered sale deed was null and void could not be sustained. The consequential auction communication based on that void declaration also fell. A bona fide purchaser's protected title cannot be displaced by an unproven recovery action against the original defaulter. en-us Mon, 02 Jul 2018 00:00:00 +0530 Mon, 27 Aug 2018 14:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=365284 A transfer for adequate consideration in favour of a purchaser without notice of pending tax proceedings or tax liability cannot be treated as void under Section 281 of the Income-tax Act unless the statutory preconditions are proved, including service of the requisite recovery notice under the Second Schedule. Where the record did not establish that foundational notice and the purchase was made after title verification and due diligence, the declaration that the registered sale deed was null and void could not be sustained. The consequential auction communication based on that void declaration also fell. A bona fide purchaser's protected title cannot be displaced by an unproven recovery action against the original defaulter. Case-Laws Income Tax Mon, 02 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=365284