Clause 262 - Certain transfers to be void - Direct Taxes Code Bill, 2009

Certain transfers to be void 262. (1) A charge on, or transfer of, any asset of a person in favour of any other person, shall be void as against any claim in respect of any sum payable by the person under this Code, if the person creates a charge on, or tranfers, any of his asset in favour of the other person during the pendency of any proceeding under this Code or after the completion thereof. (2) The charge, or transfer, referred to in sub-section (1) shall not be void, if it is made— (a) for adequate consideration and,- (i) without notice of the pendency of such proceeding; or (ii) without notice of such sum payable by the assessee; or (b) with the previous permission of the Assessing Officer. (3) This section applies to cases where the amount of sum payable, or likely to be payable, under this Code exceeds five thousand rupees and the asset charged, or transferred, exceed ten thousand rupees in value. (4) For the purposes of this section, "asset" shall not include any business trading asset.