INCOME TAX ACT, 1961

Section 281

Recovery - Certain transfers to be void - Right in property purchased of purchaser & landlord -

Assessee committed default in payment of the tax dues. As per counter affidavit filed by the TRO, assessment proceedings were initiated against assessee under section 153C. Pending assessment proceedings, ACIT ordered the attachment of properties. Order of attachment was passed in exercise of the power conferred by section 281B. Pursuant to order of attachment passed, letters were issued to Sub-Registrar under section 22-A of the Registration Act, 1908, directing him not to register the properties covered by order of attachment. Held: Under Rule 68-B (1) of the Second Schedule to the Act, 1961, no sale of immovable property can be made after the expiry of three years from the end of the financial year in which the order giving rise to a payment of any tax, interest, fine, penalty or any other sum, for recovery of which the immovable property was attached. The period of three years from the date of order of attachment had already passed. The properties attached were not brought to sale within three years. Therefore, orders of attachment have lost their potency and appeal of assessee was allowed.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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