TAX RECOVERY MEASURE |
| Sub-Topics | Sections |
A | Certain Transfers to be void and Provisional Attachment | 281, 281B |
B | Tax recovery procedure | 220 to 232 |
C | Settlement of Cases | 245A to 245M |
281 – TRANSACTIONS TO BE VOID 281B - PROVISIONAL ATTACHMENT |
Question 01 (Certain transfer to be void and provisional attachment) (ID 01) (Revision / Home work)
Recovery proceedings were initiated against the assessee and her husband. Since the arrears could not be realised the assessee’s property was attached u/s 281 / 281B in February. The assessee got divored by pronouncing TALAQ on 15th March. The assessee filed an objection petition stating that the properties were gifted in the past by oral gift to her by her ex-husband and she had been separated by the pronouncement of “Talaq” (divorce) and was in no way responsible for the personal liability of her ex-husband. You are required to give your valuable opinion whether attachment u/s 281 / 281B was justified.
Question 02 (Certain transfer to be void and provisional attachment) (ID 02) (Revision / Home work)
One M/s. Simplex Enterprises had booked and was allotted shop No. 4 admeasuring 2403 sq. ft. (with 1437 sq. ft. of Mezzanine floor) in Virwani Plaza at Pune in June, 1988. The Mr. Kalpesh Sanghavi (defaulter) paid the earnest money for procuring the said allotment. On January 23, 1997, an ITCP-1 was served for recovery of the outstanding demand. In June, 1997, the Mr. Kalpesh Sanghavi paid the balance money to the builder and obtained the possession of the said shop. In July, 1998, the Mr. Jayanti purchased rights, title and interest of the Mr. Kalpesh Sanghavi in the said shop. Sale deed was executed between the builders and the Mr. Jayantis for sale of the said shop in November, 1998, with the Mr. Kalpesh Sanghavi as a confirming party. The Tax Recovery Officer at Pune under the certificate from Tax Recovery Officer, attached the said shop on January 10, 2001 and declare the sale as void. You are required to give your opinion whether the attachment is justified.
Question 03 (Certain transfer to be void and provisional attachment) (ID 03) (Revision / Home work)
N was liable to pay certain sums on account of income tax, penalty, interest and fine. He was also liable to pay certain sums under the Wealth-tax Act. N was the owner of certain premises to the extent of 35 / 96th shares and 1/6 of 61 / 96th shares. The Tax Recovery Officer issued an order restraining N from transferring or charging the said premises and prohibited all persons from taking any benefit under such transfer or charge. Notices under section 226(3), were issued and served upon the tenants asking the tenants to pay the rent to the Income-tax Department. The writ petitioners, namely, the son of N and N’s wife filed a writ petition challenging the notices. It was claimed in the writ petition that N had executed a deed of trust, concerning his shares in the premises in question and appointed the petitioners the trustees thereof. The Revenue filed an affidavit-in-opposition and declare the transaction as void under section 281 contending that the deed of trust was created fraudulently and to defraud the creditors including the Revenue to whom large sums of money were due. You are required to offer your comments for the same.
Question 04 (Certain transfer to be void and provisional attachment) (ID 04) (Revision / Home work)
Mr. X a stock broker is insolvent. His tax dues are Rs. 30 crore. He has his personal house worth 25 crore, stock membership card (rights) worth 12 crore, motor cars 2 crores and bank balance 10 crores. Motor cars are gifted to his friend just 30 days before his insolvency. Stock membership card is forfeited by stock exchange. You are required to answer whether all the assets can be attached u/s 281 read with 281B. what are the priority of the attachment.
TRO / TAX RECOVERY |
Question 01 (TRO procedure) (Revision / Home work)
The assessing officer served a notice of demand on the assessee for the tax payable Rs. 2,000. The notice was served on 1st July, giving him time up to 31st July. The assessee paid it on 30th September. What are the consequences? Can the assessee have any relief ?
Question 02 (TRO procedure) (Revision / Home work)
If an assessee has filed an Appeal U/s. 246, can the A.O. treat the assessee as assessee In default for non-payment of tax as communicated by notice of demand? Can it be equaled with power of appellate authority to grant stay of recovery ?
Question 03 (TRO procedure) (Revision / Home work)
A recovery certificate U/s. 222 is to be issued. But the assessee has died. Advice the A.O. regarding to course of action.
Question 04 (TRO procedure) (Revision / Home work)
A recovery certificate U/s. 222 is prepared by an A.O. The assessee is having property a part of which is not within the jurisdiction of this A.O. What is the remedy available to this A.O.? Can he correct any clerical or arithmetical error in such certificate which is discovered subsequently ?
OR
Mr. Sukesh Is an assessee deemed to be in default U/s. 220. The recovery is to be made from him, but he is not having any property in India. However, it is understood that he has a lot of property in foreign countries. What is the course to action available to the revenue in such a case ?
Question 05 (TRO procedure) (Revision / Home work)
When can the T.R.O. stay the proceedings for recovery of tax? What is the ultimate result of such stay?
Question 06 (TRO procedure) (Revision / Home work)
What is meant by 'Garnishee Proceedings'? When can TRO Initiate such proceedings?
Question 07 (TRO procedure) (Revision / Home work)
A notice of demand has been served on the assessee and he failed to pay the dues. Can the government file a suit for recovery instead of using the modes of recovery under chapter XVII of Income Tax Act, 1961?