9911796707
TMI Blog2025 (1) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... , the transfer cannot be deemed to be void. There is nothing to indicate that the proceedings initiated by the Income Tax Department was known to the petitioners-the purchasers in the court auction. It is also relevant to mention at this juncture that, pursuant to the auction held on 14.01.2009, petitioners had deposited an amount far in excess of the decree amount. They had to deposit Rs. 59,000/- over and above the decree amount with the court to be appropriated to the judgment debtor. Thus, it is evident that the petitioners had purchased the property in the court auction for adequate consideration and that too, without notice of the pendency of the proceedings initiated by the Income Tax Department. Since, the purchase of the property i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HU KURIAN THOMAS, J Petitioners challenge inter alia Ext. P8 order dated 14.03.2023, rejecting the claim petition put forth by them in respect of a property purchased by the petitioners in a court auction covered by Ext. P2 sale certificate. Petitioners also seek a direction for release of the aforesaid property from an attachment issued by the 1st respondent. 2. Petitioners are the decree holders in O.S No. 185/2006 on the files of the Sub Court, Alappuzha. The said suit was filed claiming amounts due from the 2nd respondent. On the date of filing of the suit, an attachment before judgment was obtained under Order 38 Rule 5 of the Civil Procedure Code, 1908 [for short C.P.C], in respect of 6 cents of property. Subsequently, pursuant to med ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the income tax officer to consider the claim petition preferred by the petitioners. By Ext. P8 order, the said petition was dismissed resulting in an amendment of this writ petition. Petitioners have thus challenged the said order as well. 5. The contention raised by the petitioners are based upon the alleged bona fide purchase of a part of the property, now under attachment, initiated by the Income Tax Department. Petitioners contend that the property purchased by them cannot be proceeded against by the Income Tax Department for alleged dues of the 2nd respondent. 6. I have heard Sri. Sachithananda Pai, the learned counsel for the petitioners as well Sri. Cyriac Tom, the learned Standing counsel appearing on behalf of Sri. Jose Joseph, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses where the amount of tax or other sum payable or likely to be payable exceeds five thousand rupees and the assets charged or transferred exceed ten thousand rupees in value. 8. On a reading of the above proviso to Section 281 it is evident that, if the transfer is made for an adequate consideration and without notice of the pendency of the proceedings by the Income Tax Department or without notice of such tax due from the assessee, the transfer cannot be deemed to be void. 9. A glance at the dates involved in the present case is relevant. On 29.11.2006, O.S. No.185/2006 was instituted and an attachment before judgment was obtained. On 03.04.2007, Ext. P1 award was passed creating a charge on the property scheduled in the plaint. Till the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Department is in respect of 51 cents of property, while the petitioners had purchased only 6 cents out of the said extent. It is submitted across the Bar that a multi-storied building is even existing on the remaining extent of property and therefore, no prejudice would befall the Income Tax Department, if they proceed against the remaining extent. 12. In the decision in S. Mathews v. The Secretary Ambalappuzha North Grama Panchayath and others [W.P.(C) No. 21769/2017], a learned Single Judge of this Court, had, in a similar situation, observed that, in the facts of the said case, since the sale was without notice of the proceedings initiated by the Income Tax Department, the benefit of proviso to Section 281 of the Income Tax Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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