https://www.taxtmi.com/caselaws?id=766713 Delhi HC ruled that secured creditor's rights take precedence over tax dues unless specifically stipulated by statute. The court found that a bank's hypothecation agreement executed before the income tax prohibitory order established priority over revenue claims. Despite the Income Tax Department being formally notified of the helicopter auction and failing to object, they later challenged the sale. The court held that the secured creditor was entitled to exercise rights over the assets and sell the helicopters, as their legal foundation predated tax authority actions. The petitions were allowed, confirming the auction's validity. en-us Mon, 24 Feb 2025 00:00:00 +0530 Mon, 03 Mar 2025 08:22:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766713 Delhi HC ruled that secured creditor's rights take precedence over tax dues unless specifically stipulated by statute. The court found that a bank's hypothecation agreement executed before the income tax prohibitory order established priority over revenue claims. Despite the Income Tax Department being formally notified of the helicopter auction and failing to object, they later challenged the sale. The court held that the secured creditor was entitled to exercise rights over the assets and sell the helicopters, as their legal foundation predated tax authority actions. The petitions were allowed, confirming the auction's validity. Case-Laws Income Tax Mon, 24 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766713