Transfer of land was not with intention to defraud revenue

CST & VAT : Where Assessing Officer in order to recover arrears of tax due from one 'B' had attached his land and thereafter 'B' had sold said land to assessee, since 'B' had not discharged initial onus showing that transfer of land was not with intention to defraud revenue, action of Assessing Officer putting charged land to sale could not be faulted

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[2014] 50 taxmann.com 197 (Andhra Pradesh)

HIGH COURT OF ANDHRA PRADESH

Showtech Stone International (P.) Ltd.

v.

Deputy Commercial Tax Officer-I, Saroornagar Circle, Hyderabad*

RAMESH RANGANATHAN AND SATYANARAYANA MURTHY, JJ.

WRIT PETITION NO. 13475 OF 2010

AUGUST  28, 2014 

Section 27, read with section 26, of the Andhra Pradesh Value Added Tax Act, 2005 and sections 53 and 100 of the Transfer of Property Act, 1882 - Recovery of tax - Attachment of property - Assessment years 2005-06 to 2007-08 - Assessing Officer finalised assessments of one 'B' and raised tax demand upon him - He in order to recover arrears of tax due from 'B' had attached his land - Thereafter 'B' had sold said land to assessee by registered sale deed dated 17-3-2007 - Later Assessing Officer issued on assessee a notice proposing to recover arrears of tax due from 'B' putting above land to sale - 'B' had not discharged initial onus placed on him under section 27(1) showing that transfer of land was not with intention to defraud revenue - Whether action of Assessing Officer putting charged land to sale could not be faulted - Held, yes [Para 30] [Partly in favour of assessee]