https://www.taxtmi.com/caselaws?id=431440 Tax dues do not obtain priority over a secured creditor unless the statute expressly creates a first charge in favour of the revenue, and an Income Tax Department attachment does not by itself create a charge over property. Section 281 of the Income-tax Act merely renders certain transfers or charges void against tax claims; it does not create a revenue charge. By contrast, Section 26E of the SARFAESI Act and Section 31B of the Recovery of Debts and Bankruptcy Act confer overriding priority on secured creditors, so a valid pre-existing mortgage or security interest prevails over a later revenue attachment. en-us Thu, 01 Sep 2022 00:00:00 +0530 Fri, 03 May 2024 11:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=431440 Tax dues do not obtain priority over a secured creditor unless the statute expressly creates a first charge in favour of the revenue, and an Income Tax Department attachment does not by itself create a charge over property. Section 281 of the Income-tax Act merely renders certain transfers or charges void against tax claims; it does not create a revenue charge. By contrast, Section 26E of the SARFAESI Act and Section 31B of the Recovery of Debts and Bankruptcy Act confer overriding priority on secured creditors, so a valid pre-existing mortgage or security interest prevails over a later revenue attachment. Case-Laws Income Tax Thu, 01 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=431440