TAX RECOVERY OFFICER Vs. BANK OF INDIA

JUDGEMENT

(1.) AS both the cases have been preferred by a common petitioner, i.e. the Tax Recovery Officer, Panchmahal Range, Godhra, and a common question of law is involved, they were heard together, and being disposed of by this common judgement.

(2.) THE only question involved in the present case is whether the charge created by the respective borrowers in favour of their respective secured creditor Banks is saved under the proviso to sub-sec.(1) of Sec.281 of the Income Tax Act, 1961, or is void as against the claim of tax payable by the borrower assessee in favour of the Revenue the writ petitioners.

(3.) THE 1st respondent Bank of India initiated recovery proceeding against the 2nd respondent borrower for recovery of secured debts. THE petitioner Tax Recovery Officer, Godhra, in the meantime, has issued demand notice to the 2nd respondent, which has failed to pay huge income tax dues, and consequently the petitioner - Department passed an order of attachment of immoveable property on 7/18 October 2002, and attached the immoveable property. THE warrant of attachment of moveable or immoveable property under Rule 20 of the 2nd Schedule was issued on 26th December 2002, thereby, the moveable assets of the 2nd respondent were also attached.