https://www.taxtmi.com/caselaws?id=30113 Section 281(1) of the Income-tax Act voids transfers against revenue claims only where they are made during pending proceedings or before service of notice in the Second Schedule, while the proviso protects transfers for adequate consideration made without notice of the tax liability or with prior permission of the Assessing Officer. The Court noted that the purchasers obtained an Income Tax Clearance Certificate, acted as bona fide purchasers after due enquiry, and no material showed absence of consideration or notice of any subsisting liability. It also observed that the department had no independent power to declare the sale void in the manner attempted, particularly when the underlying transfer was already in civil litigation. The proceedings and attachment were quashed. en-us Thu, 24 Jan 2008 00:00:00 +0530 Tue, 14 Jun 2011 04:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=30113 Section 281(1) of the Income-tax Act voids transfers against revenue claims only where they are made during pending proceedings or before service of notice in the Second Schedule, while the proviso protects transfers for adequate consideration made without notice of the tax liability or with prior permission of the Assessing Officer. The Court noted that the purchasers obtained an Income Tax Clearance Certificate, acted as bona fide purchasers after due enquiry, and no material showed absence of consideration or notice of any subsisting liability. It also observed that the department had no independent power to declare the sale void in the manner attempted, particularly when the underlying transfer was already in civil litigation. The proceedings and attachment were quashed. Case-Laws Income Tax Thu, 24 Jan 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=30113