Section 281

Section 281 — the law in short

What the courts have decided on section 281, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• TRO v Gangadhar Vishwanath Ranade Supreme CourtHelps taxpayer
  The TRO has attached property the defaulter transferred years ago and calls the transfer void. Can he do that?
  No. In a Rule 11 enquiry under the Second Schedule the Tax Recovery Officer can only decide who is in possession and in what capacity; he has no power to declare a transfer by the assessee to a third party void under s.281. To get that declaration the Department must file a suit.
• CBDT Circular 4/2011 CBDT Circulars & InstructionsCuts both ways
  I want to sell an asset or mortgage business assets while a tax demand is pending. How do I get permission?
  Apply to the Assessing Officer in the prescribed form at least thirty days before the proposed transaction. Permission is to be granted where there is no demand and none likely within six months, where an undisputed demand is paid with interest, or where a disputed demand is stayed and secured by bank guarantee, sufficient other assets or a departmental first charge; refusal must be by a reasoned order approved by the range head.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.