Property transfer valid if adequate consideration paid without tax liability notice.

The High Court ruled that a property transfer is valid if made for adequate consideration without notice of tax liabilities or pending proceedings by the Income Tax Department, as per Section 281 proviso. The petitioners, who bought a property portion through a court auction without knowledge of the previous owner's tax issues, were protected from the Department's claims. The court emphasized that the petitioners were bona fide purchasers and the Income Tax Department cannot act against them, referencing legal precedent to support the decision. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X