https://www.taxtmi.com/caselaws?id=446667 A mortgage by deposit of title deeds created before the Revenue's attachment was treated as giving the bank priority over the Income Tax Department's recovery claim. Non-registration of the earlier mortgage did not defeat the bank's secured rights, and the Income-tax Act was held not to create an automatic first charge in favour of the Revenue. The proviso to section 281 was applied to protect bona fide transactions, with secured creditor priority prevailing on the facts. As a result, the attachment of the mortgaged property and the consequential encumbrance entry were held unsustainable and liable to be removed. en-us Tue, 28 Nov 2023 00:00:00 +0530 Fri, 03 May 2024 11:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446667 A mortgage by deposit of title deeds created before the Revenue's attachment was treated as giving the bank priority over the Income Tax Department's recovery claim. Non-registration of the earlier mortgage did not defeat the bank's secured rights, and the Income-tax Act was held not to create an automatic first charge in favour of the Revenue. The proviso to section 281 was applied to protect bona fide transactions, with secured creditor priority prevailing on the facts. As a result, the attachment of the mortgaged property and the consequential encumbrance entry were held unsustainable and liable to be removed. Case-Laws Income Tax Tue, 28 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446667