U.P. Trade Tax Act, 1948 – s.34 – When applicable – Held: s.34 shall be applicable only in a case where there is a transfer of immovable property belonging to the original assesee, during the pendency of any proceedings under the Act with the intention of defrauding any such tax or other dues – As per proviso to s.34, nothing in s.34 shall impair the rights of a transferee in good faith and for consideration – In the present case, the transfer of goods, plant, and machinery (may be treated as immovable property) in favour of the respondent-purchaser took place on 12.12.85 and
01.01.86 for consideration, whereas the assessment proceedings (for the assessment years 1980-81,w.r.t which the amount of tax due andpayable by the original assesseeis in dispute) had concluded in the year 1984 and assessment was reopened in the year 1988 – Also, the recovery certificate was issued against the original assessee on 15.04.90 and the endorsement for recovery against the purchaser was on 26.03.93 – Thus, at the time of transfer of immoveable property of the assessee which was for value/consideration, no proceedings under the Act were pending, therefore s.34 shall not be applicable – Hence, the endorsement to recover the amount due and payable by the original assessee against the purchaser which was in exercise of powers u/s.34 was rightly set aside by the Trade Tax Tribunal – No error committed by High Court in dismissing the revision applications confirming the orders passed by the Tribunal.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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