The petitioner challenged the order passed by the Tax Recovery Officer under section 281 of the Act . Allowing the petition the Court held that the order was passed without giving an opportunity of hearing hence the order is bad in law . The Court also held that the Tax Recovery Officer cannot examine whether the transfer is void , the Department being in the position of creditor will have to file a suit for a declaration that the transaction of transfer is void under section 281 of the Act. The Court followed Tax Recovery Officer v. Gangadhar Vishwanath Ranade ( 1998) 234 ITR 188/ 100 Taxman 236(SC) / Tax Recovery Officer v. Gangadhar Vishwanath Ranade ( 2007) 294 ITR 614/ ( 2008) 170 Taxman 289 ( Bom)(HC) . Writ petition was allowed . ( WP No. 3815 of 2021 dt 19 -7 -2022 )
Nitn Nagarkar v. ITO( Bom)(HC) , www.itatonline .org .
S. 281 : Certain transfers to be void -Natural justice – Order passed without giving an opportunity of hearing – Bad in law -Tax recovery Officer has no jurisdiction to examine whether the transfer is void-Order was quashed . [S. 222, Rule 11 of the Second Schedule, Art , 226, Transfer of Property Act , 1882, S.53 ]