TaxTMI 
TaxTMI 
2018 (8) TMI 756
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....l disposal. 3. The present petition under article 226 of the Constitution of India challenges the order dated 26.05.2015 passed by TRO, Ahmedabad (respondent no.1) under rule 16 of the second schedule of the Income Tax Rules. Under the impugned order, sale deed dated 11.12.2008 of property situated at 142, Sardar Patel Colony, Sardar Patel Cooperative Housing Society, Navrangpura, Ahmedabad was declared null and void, and the property was also ordered to be auctioned under communication dated 19.12.2017. 4. The fact in brief are that the petitioner acquired the afore mentioned property by executing a sale deed dated 11.12.2008 for a consideration through the power of attorney of the original owner Shri Virenkumar C. Thakkar. The transacti....
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....d illegal but also without any jurisdiction. It is submitted that therefore, the subsequent action of auctioning the property under communication dated 19.12.2017 is also illegal. 8. It is submitted that the impugned order declaring the sale dated 11.12.2008 as null and void is also required to be quashed as the same is made after unreasonable delay of six and a half years and therefore, the action of the respondent does not fall within a reasonable period. 9. It is submitted that the respondent no.1 has no jurisdiction, power or authority to declare the sale transaction as null and void and the same is contrary to the ratio of the Apex Court in the case of (TRO) Tax Recovery OfficerII, Sardar Nagpur V/s Gangadhar Vishwanath Ranade,1998 (....
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....learned advocate for the respondent revenue submitted that the property in question originally belonged to Shri Virenkumar C. Thakkar and when the assessment order under Section 144 read with Section 147 of the Income Tax Act for the Assessment Year 1998-99 was passed on 23.03.2006 and was served upon said Shri Virenkumar C. Thakkar wherein, demand of Rs. 1,25,66,670/was communicated. The said demand was certified by the Assessment Officer on 22.08.2006 and Tax Recovery Certificate was issued on said Shri Virenkumar C. Thakkar on 06.09.2006. On the account of default by said Shri Virenkumar C. Thakkar, the immovable property of such defaulter being 142, Sardar Patel Colony, Sardar Patel Cooperative Housing Society, Navrangpura, (SIC.) Ahmed....
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.... report dated 01.10.2008 is also on record along with the title clearance certificate of the advocate. All these documents go on to suggest that the property in question was free from all encumbrance having title clear and was available for transaction. 15. The petitioner therefore, being bonafide purchaser for consideration after due diligence can not be made to suffer on account of the tax dues running in the name of the original owner. The documents produced along with additional affidavit being the order under Section 179(1) of the Income Tax Act, the certificate under Section 222 of the Income Tax Act, the order of attachment and panchnama drawn are all against the defaulter Shri Virenkumar C. Thakkar, wherein the present petitioner w....
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....he transferee can demonstrate that the transaction had taken place with the previous permission of the Assessing Officer or that the same was entered into for adequate consideration and without notice of pendency of such proceedings or without notice of such tax or other sum payable by the assessee. 9. This element of the transaction being with adequate consideration and without notice would equally apply to the assessee as well as the transferee. In a given case, it may even be open for the assessee to establish that the transaction was for adequate consideration without notice. In a given case, even if the assessee had notice of the pendency or the outstanding tax or sum payable, the transferee can still take shelter of the transaction....