2022 (7) TMI 1092

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....lant. Mr. Akhileshwar Sharma, Advocate for the Respondents. (PER DHIRAJ SINGH THAKUR, J.): With the consent of learned Counsel for both the parties, the petition is taken up for final disposal at the admission stage. 2. The Petitioner has challenged inter alia the order dated 27th June, 2007 passed by Respondent No. 2 in purported exercise of power under Section 281 of the Income Tax A....

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....d property and parted with the possession by way of sale deed in favour of the Petitioner during the pendency of the assessment proceedings against the assessee and was, therefore, void in terms of Section 281(1) of the Income Tax Act, which reads as under: "281. Certain transfers to be void.-(1) Where, during the pendency of any proceeding under this Act or after the completion thereof, ....

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..... Learned Counsel for the Petitioner urged that the order impugned passed by Respondent No. 2 was contrary to the ratio of the judgment of Supreme Court in the case of Tax Recovery Officer V/s. Gangadhar Vishwanath Ranade (1998) 100 Taxman 236 (SC). The Supreme Court in the judgment (supra), while confirming the Division Bench judgment of the Bombay High Court held that the Tax Recovery Officer (f....

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....ill have to raise the attachment. If the department desires to have the transaction of transfer declared void under section 281, the department, being in the position of a creditor, will have to fle a suit for a declaration that the transaction of transfer is void under section 281." 6. Incidentally, a Division Bench of this Court in the case of Ms. Ruchi Mehta V/s Union of India [2008] 170 Tax....