SANCHETI LEASING COMPANY LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioners are purchasers of two different items of properties from a common vendor. THEy are aggrieved by the order of the Income-tax Officer who has declared their purchases as void by his order dated April 7, 1994, which concludes as under :

(2.) THE petitioners are the purchasers of the two properties mentioned in the order of the Income-tax Officer. THE assessee referred to therein is their common vendor.

(3.) THE Supreme Court of India in its recent decision rendered in the case of TRO v. Gangadhar Viswanath Ranade (Decd.) [1998] 234 ITR 188 has held that if the Department finds that the assessee has transferred a property to a third party with the intention to defraud the Revenue, the Revenue will have to file a suit under Rule 11(6) of Schedule II to the Income-tax Act to have the transfer declared void under Section 281 of the Income-tax Act.