1995 (3) TMI 21

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ative Housing Society Limited, Pali Hill, Bombay, and purchased certain shares in his name. In lieu of the same, he was given possession of a Flat No. 82-B. As per the bye-laws of the society on transfer of the shares held by the member, the possession and ownership of the flat also stand transferred to the transferee. In September, 1988, the petitioner transferred the shares in the name of his wi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... enue took a preliminary objection to the maintainability of the writ petition on the ground that the petitioner having parted with the interest in the property, has no locus standi to file the writ petition. But the order impugned shows that the property will continue to be the property of the assessee. If that is the case, any income derived on the said property after the transfer would be treate .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... is beyond the scope of section 281 of the Income-tax Act. Learned counsel for the Revenue contended that the assessee continues to be the owner of the property as the transfer is void under section 281 of the Income-tax Act as against the claims in respect of the tax liability. Section 281 reads as follows : " 281. Certain transfers to be void. --- (1) Where, during the pendency of any procee .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d proceeding or otherwise. Thus, it is clear that the transaction or the transfer is not void ab initio. Section 281 only declares that any transfer is void against the claims of the Revenue in respect of the tax finally determined in a proceeding which has been pending at the time of the transfer. Section 281 does not say that even after the transfer of the property the ownership continues to be .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s wife is void only against the claims of the Revenue in respect of the tax liability or any other sum payable by the assessee as a result of the completion of the proceedings pending or completed at the time of the transfer. We also direct the deletion of the last sentence, viz., "will continue to be the property of the assessee" in the impugned order of the Deputy Commissioner of Income-tax. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X