Allowing the petition the Court held that\u00a0 \u00a0there was no dispute on the fact regarding creation of the mortgage. However, in the order there was omission to mention finding on dates of initiation of proceedings and creation of the mortgage, to demonstrate that the mortgage was created subsequent to initiation of the proceeding. The Tax Recovery Officer has power under rule\u00a083\u00a0in the Second Schedule empowering him to take evidence exercising power of a civil court. But in exercise of the power there must be laid evidence to substantiate the declaration of the mortgage being void. So far as rule\u00a086\u00a0was concerned, the Department had not argued that order was not one, which was conclusive in declaring the mortgage void. No finding that the date of initiation of proceeding was prior to date of creation of the mortgage could be located in the order. Order was bad for being vague. The order is \u00a0set aside.( AY. 2012 -13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 281 : Certain transfers to be void -Recovery of tax \u2014 Secured creditor \u2014 Priority of debt \u2014 Mortgage of land and construction -\u2014 Attachment of property \u2014 Transfers void against Department \u2014Finding on date of initiation of proceeding prior to date of creation of mortgage not found in order \u2014 Order vague \u2014 Order set aside- [ ITRule. 83 , Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 \u2014 Recovery of Debts and Bankruptcy Act, 1993, Art. 226 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-42621","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-b5r","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=42621"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42621\/revisions"}],"predecessor-version":[{"id":42622,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42621\/revisions\/42622"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=42621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=42621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=42621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}