https://www.taxtmi.com/caselaws?id=15991 A compulsory statutory acquisition of a textile undertaking did not amount to a transfer or succession that could fasten the predecessor company's income-tax arrears on the acquiring entity. Section 281 could not be used to challenge a valid legislative acquisition or to treat the transaction as a fraudulent transfer, and the acquisition statute preserved prior liabilities with the original owner. Section 170 also did not apply because there was no real succession from the company to the petitioner for income-tax purposes. The acquiring entity was therefore protected from recovery of the predecessor's tax, interest, and penalty liabilities for the pre-acquisition period. en-us Fri, 23 Oct 1998 00:00:00 +0530 Mon, 31 Aug 2009 13:24:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15991 A compulsory statutory acquisition of a textile undertaking did not amount to a transfer or succession that could fasten the predecessor company's income-tax arrears on the acquiring entity. Section 281 could not be used to challenge a valid legislative acquisition or to treat the transaction as a fraudulent transfer, and the acquisition statute preserved prior liabilities with the original owner. Section 170 also did not apply because there was no real succession from the company to the petitioner for income-tax purposes. The acquiring entity was therefore protected from recovery of the predecessor's tax, interest, and penalty liabilities for the pre-acquisition period. Case-Laws Income Tax Fri, 23 Oct 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15991