TRO couldn't declare sale of property void under sec. 281 and attach property even if tax was overdue from seller

Section 281 of the Income-tax Act, 1961 - Certain transfer to be void (Jurisdiction and power of TRO) - Assessee purchased a property from one 'M' on 17-5-1995 - 'M' had defaulted in making payment of income tax dues for various assessment orders - Assessing Officer issued several demand notices on 'M' during years 1989 to 1994 for recovery of unpaid taxes - 'M' had not paid such taxes - Tax Recovery Officer attached above property by issuing an order dated 22-5-1995 - Thereafter he passed an order dated 8-11-1995 under section 281 declaring above sale transaction as void - Whether in view of decision of Supreme Court rendered in case of T.R.O. v. Gangadhar Vishwanath Ranade [1998] 234 ITR 188/100 Taxman 236, Tax Recovery Officer had no power under section 281 to declare above sale transaction as void - Held, yes [Para 15] [In favour of assessee]

Refer:[2014] 43 taxmann.com 415 (Gujarat)
HIGH COURT OF GUJARAT
Karsanbhai Gandabhai Patel
v.
Tax Recovery Officer