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TMI Blog2008 (8) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... s Nos. 1 to 3 to proceed for recovery against the fifth respondent for the balance liability by attachment and sale of balance property or any other property transferred by him in similar manner, after issuing notice to transferees. If the defaulter has concealed or benami wealth and recovery is consciously avoided, section 65 proceedings also should be initiated against him. - W.P. (C) No. 22501 of 2006 - - - Dated:- 29-8-2008 - RAMACHANDRAN NAIR C.N. , J. C.N. RAMACHANDRAN NAIR J. The petitioner is challenging recovery proceedings initiated against his property for recovery of arrears of sales tax due from fifth respondent for the assessment year 1993-94. The petitioner's case is that petitioner purchased property from defaul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any proceedings under this Act or after the completion thereof, any assessee creates a charge on, or parts with the possession (by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever) of any of his assets in favour of any person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the assessee under this Act. It is clear from the above provision that arrears of tax can be recovered from the property of the defaulter, ignoring any charge created in respect of the property by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever, if such transactions were effected during pendency of any proceedings under this Act. The only question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by petitioner from defaulter's wife for recovery of arrears of sales tax due from the original owner, namely fifth respondent. The learned counsel for the petitioner contended that petitioner is bona fide purchaser for valid consideration. However, it is strange that petitioner did not critically take note of the title of the person from whom he purchased the property, i.e., the wife of the defaulter. The transaction of sale of property between husband and wife has to be always examined closely and critically because such transaction of sale normally does not take place. If petitioner was little careful, it would have come to his knowledge without any difficulty that the seller is a defaulter or a person who has statutory liability und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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