Court held that the Tax Recovery Officer could not declare the transfer of the property null and void according to the provisions of the 1961 Act. granting liberty to the petitioner to approach the Tax Recovery Officer under rule 11 of the Second Schedule seeking adjudication of its claim was set aside and the Department was granted liberty to file a civil suit to declare the sale transaction and sale deed executed in favour of the petitioner, null and void.
Agasthiya Holdings Pvt. Ltd. v. CIT (2018) 403 ITR 288/255 Taxman 247 / 166 DTR 300 / 305 CTR 399(Mad) (HC)
S. 281 : Certain transfers to be void – Transfer of property by legal heirs of original assessee — Tax recovery officer has no power to declare transfer is void- Department was granted liberty to file a civil suit to declare the sale transaction and sale deed executed in favour of the petitioner, null and void. [ S.222, 226 ]