Champa Devi v. Tax Recovery Officer (2018) 257 Taxman 296/ 170 DTR 36 (Mad.)(HC)

S. 281 : Certain transfers to be void – Property under attachment – Alternative remedy -Purchase of property is held to be void- If petitioner’s claim was that property was not liable for such attachment, then she had to make a claim before Tax Recovery Officer – Writ is not maintainable .[ Sch. II , R. 11, Art .226 ]

Purchase of property by petitioner was declared void as it was under attachment proceedings for recovery of tax dues of vendor. Petitioner filed  writ stating that she was a bona fide purchaser of said property for adequate consideration and as on date of purchase, there were no encumbrances/charge on property .Further, there were no income-tax dues payable by petitioners vendor and to that effect, a certificate was issued by Assistant Commissioner.  It was also submitted that Tax Recovery Officer attached petitioner’s property for arrears of vendor long after petitioner had purchased property and therefore, notice of attachment would not bind petitioner . Dismissing the petition the Court held that ; if petitioner’s claim was that property was not liable for such attachment, then she had to make a claim before Tax Recovery Officer and for such reason, petitioner could not have approached writ court invoking jurisdiction under Article 226 of Constitution of India .