Recovery of taxes by ignoring private transfers of property.

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....de during the pendency of any income-tax to proceedings including the recovery proceedings. The question as to the exact manner in which the rights conferred by these provisions can be invoked and enforced has been examined by the Central Board of Direct Taxes. One view was that such claims can be enforced only through civil courts and the Department may have to file a civil suit seeking a declara....

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....a person, who prefers a claim or an objection, to institute a suit in a civil court against the order passed by the Tax Recovery Officer so as to establish his right to the property in question. 3. It is therefore, clarified that :- (i) It is not incumbent on the Department to move a civil court to establish its claim either under section 281 of the Income-tax Act or under Rule 16 of the Second ....

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....e Income-tax Officer/Tax Recovery officer an opportunity for reaching an objective satisfaction about the applicablity of these provisions to the impugned transfer. (iii) It will be noticed that the power of attachment of only movable properties is available to the Income-tax Officers u/s 226(5) of the Income-tax Act, will the Tax Recovery Officer has the power to attach all properties. The oppor....