S. 281 : Certain transfers to be void-Provision applicable during pendency of any proceeding under Act or after completion thereof, but before service of notice by Tax Recovery Officer Transfer void as against any claim in respect of tax or other sum payable by assessee against claims enforceable under attachment-Transfer not completely unenforceable-Tax Recovery Officer does not have power to adjudicate on validity of transfer in favour of third party-Declaration by Tax Recovery Officer that mortgage by in favour of creditor was void ab initio-Not sustainable-Order of Tax Recovery Officer to that extent liable to be set aside-Transfer of property Equitable mortgage Mortgage by deposit of title deeds-Registration of mortgage not possible or required-Memorandum of Deposit of Title Deeds not document under which mortgage is created and, consequently, does not fall within scope of registration-Compulsory registration is necessary in Tamil Nadu-Memorandum of Deposit of Title Deeds not mentioning date of deposit of title deeds nor when money borrowed by assessee-Mortgagee not asserting that mortgage was created prior to date of service of notice-Date of creation of mortgage inferred to be subsequent date of receipt of notice Exemption as bona fide transferee without notice not available to mortgagee-Assessee required to obtain permission of Tax Recovery Officer before alienating property-In absence of such permission, assessee not competent to mortgage property-On or after date of notice, no process against property of assessee for enforcement of money decree may be issued by civil court Mortgage created after service of notice-Tax Recovery Officer entitled to proceed to recover arrears by sale of property and adjust tax dues out of sale proceeds-Any surplus shall be retained by him and paid to mortgagee. [S. 221, 281(1), Sch, II, r. 2, 3, 4, 11, 16, 48, 51, Transfer of Property Act, 1882, S. 58(f), Indian Registration Act, 1908, S. 17(1)(b).

S. 276CC : Offences and prosecutions-Failure to furnish return of income-Proven to be non-wilful and caused by circumstances beyond assessee’s control-The statutory presumption of culpable mental state under section 278E stood rebutted-Vitiating foundation necessary for conviction under section 276CC and justifying acquittal-Onus on assessee to establish beyond reasonable doubt that failure was not intentional-Acquittal by session judge was proper-Mere setting aside of penalty under section 271(1)(b) by an appellate authority does not, by itself, vitiate prosecution under section 276CC. [S. 132, 153A, 278E, Criminal Procedure Code, 1973, S. 378]

S. 276C: Offences and prosecutions-Wilful attempt to evade tax-Compounding of offence-False verification-High Court holding assessee entitled to composition and directing the Department to compound offences-A compounding application under section 279(2) which was rejected by competent authority and thereafter, despite final directions of High Court, he was asked to pay compounding charges determined in accordance with revised Compounding Guidelines dated 17-10-2024, such demand was unsustainable and compounding fee was liable to be recomputed under CBDT Guidelines dated 16-5-2008.[S. 276C, 277, 279(1A), 279(2),279(6), Art. 226]

S. 276C: Offences and prosecutions-Wilful attempt to evade tax-Contempt of court-Compounding of offences-Jurisdiction of court-Court cannot, in contempt jurisdiction, water down or dilute order of court by issuing fresh directions.-Single judge conclusively holding assessee entitled to compound offence and that decision of Supreme Court applicable to assessee-Department not appealing against order of single judge-Pursuant thereto Department again rejecting application for composition and single judge on assessee’s writ petition directing Department to compound Appeal to Division Bench-Assessee entitled to compound offence final in first round of litigation and Department not entitled to contend against it Bench will not consider question of assessee’s right to compound or applicability of circulars-Order of single judge affirmed.[S. 273A, 276C, 277, 279(1A), 279(2),Art. 226]

S. 276C: Offences and prosecutions-Wilful attempt to evade tax-Contempt of court-Compounding of offences-False verification-High Court dismissing assessee’s petition seeking quashing of criminal proceedings-Appeal disposed of on basis of order arising out of assessee’s application for compounding offences, directing that if assessee paid compounding fee within time stipulated in order, trial court shall compound offences.[S. 273A, 276C, 277, 279(1A),279 (2), Art. 136]

S. 276C: Offences and prosecutions-Wilful attempt to evade tax-Contempt of court-Compounding of offences-False verification-High Court holding assessee entitled to composition and directing Department to compound offences-SLP of revenue dismissed-Questions of law open.[S. 273A, 276C, 277, 279(1A), 279 (2), Art. 136]

S. 197 : Deduction at source-Certificate for lower rate-High Court setting aside orders stipulating deduction at higher rate and certificate for lower deduction of tax at source issued for earlier assessment years-Notice to be issued eliciting assessee’s response when assessee unable to satisfy Department that permanent establishment not in existence-Only then, Department shall issue certificate of higher tax rate.[Art. 226]

S. 194A: Deduction at source-Interest other than interest on securities-Co-operative society-Constitutional validity-Deduction of tax at source-Provision making it obligatory for co-operative societies to deduct tax on payments of interest where total sales, gross receipts or turnover of assessee exceeds Rs. 50 crores-Provision valid-Interpretation of taxing statutes-Proviso-Statutory stipulation in the form of a proviso. Proviso introduced, bringing in conditions restricting operation of main provision. Permissible-hardships or inconvenience of the party subjected to law, by itself not a ground for judicial interference.[S.194A(3)(iii), Banking Regulation Act, 1949, S. 5(b), Art. 14, 226]

S. 172: Shipping business-Non-residents-Certificate issued by Inland Revenue Authority of Singapore stating that income derived from operation of ships in international traffic at Indian port would be governed by article 8 and not article 24 and was taxable in Singapore-Contents of certificate considered by court in earlier decision-Held, in absence of any other material on record to demonstrate veracity of certificate was doubtful Tribunal could not have restored matter to Assessing Officer merely on suspicion and doubts contrary to findings arrived at by this court in earlier decision-Assessment order passed consequent to remand quashed and set aside-DTAA-India-Singapore [S. 172(2),260A, Art, 8,24]

S. 153A: Assessment-Search-Acquisition of foreign assets-Disclosed in returns filed and reflected in books of account for relevant assessment year-Return filed under section 153A disclosing acquisition of assets before notice for penalty issued-There was no failure to disclose-No penalty warranted-No substantial question of law.[S. 260A]