2001 (12) TMI 19

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..... Narayan Prasad Choudhury was an assessee of the Income-tax Act. Narayan Prasad Choudhury was liable to pay certain sums on account of income-tax, super tax, penalty, interest and fine. He was also liable to pay certain sums under the Wealth-tax Act. Since Narayan Prasad Choudhury did not satisfy the claim of the Revenue on account of his said liabilities, the Revenue initiated proceedings before the Tax Recovery Officer to recover its dues. The Income-tax Officer forwarded the claim to the Tax Recovery Officer on March 21, 1972. The Tax Recovery Officer issued an order restraining the said Narayan Prasad Choudhury from transferring or charging the said premises No. 2/2B Harington Street, Calcutta, and prohibited all persons from taking....

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....ces under section 226(3) of the Income-tax Act and quashed the certificate proceedings challenged before him. So far as the assessment for the assessment year 1973-74 was concerned, since the appeal was preferred before the appellate authority, the appellate authority was directed to dispose of the appeal in accordance with law. It was made clear that nothing in the said decision would in any way prejudice the rights of the Revenue to take appropriate steps by a suit or otherwise for setting aside the deed of trust, if so advised, and if they were entitled in law to do so. Being aggrieved the Revenue has come up with this appeal. Mr. Ram Chandra Prasad, the learned advocate, appearing in support of the appeal, argued that in view of t....

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....s and benefits of the minor children of Narayan Prasad Choudhury and his wife. It is also clear from the provisions of the deed of trust that part of the income and benefit has been derived by the settlor himself. The settlor has been given the right of residence and as well as 1/7th of the net income of the trust property for his maintenance. Prima facie, we are, also, of the opinion that the deed of trust was created to avoid payments. However, concerning the jurisdiction of the Tax Recovery Officer to declare any transfer as void under section 281 of the Income-tax Act, the point is no longer res integra. The Supreme Court of India in TRO v. Gangadhar Viswanath Ranade (Decd.) [1998] 234 ITR 188, has categorically held that the Revenue....