COMMISSIONER OF INCOME TAX Vs. A HARI KRISHNAN

JUDGEMENT

(1.) THE question required to be decided in this appeal is whether a court sale is subject to the provisions of Chapter XX-C of the Income-tax Act, 1961. Chapter XX-C of the Act is intended to protect the interests of the Revenue by preventing evasion of tax in property dealings.

(2.) WHEN a sale is effected by the court by way of public auction, the value of the property is determined by the highest bid obtained at such auction. There is no question of the property being undervalued as the sale is by public auction, and any one interested in the purchase of the properly, is permitted to come and offer his bid. The sale so effected is further subject to the approval of the court. In the event of the sale being vitiated on any of the grounds referred to in Order XXI of the Code of Civil Procedure, 1908, the sale is liable to be set aside.