https://www.taxtmi.com/caselaws?id=37998 Rule 16 of the Second Schedule to the Income-tax Act, 1961 restricts a defaulter's power to mortgage, charge, lease or otherwise deal with property after service of notice, but it does not itself confer power on the Tax Recovery Officer to issue a blanket prohibition on transfer. The provision is directed at protecting revenue against prejudicial alienation, and any transfer in breach operates only to the extent needed for that protection. Because no express authority exists for a prohibitory order, such power cannot be implied as incidental. The impugned restraint was therefore inoperative, and declaratory relief against it followed. en-us Thu, 02 Mar 1978 00:00:00 +0530 Fri, 02 Apr 2010 14:32:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37998 Rule 16 of the Second Schedule to the Income-tax Act, 1961 restricts a defaulter's power to mortgage, charge, lease or otherwise deal with property after service of notice, but it does not itself confer power on the Tax Recovery Officer to issue a blanket prohibition on transfer. The provision is directed at protecting revenue against prejudicial alienation, and any transfer in breach operates only to the extent needed for that protection. Because no express authority exists for a prohibitory order, such power cannot be implied as incidental. The impugned restraint was therefore inoperative, and declaratory relief against it followed. Case-Laws Income Tax Thu, 02 Mar 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37998