Case Law Details
C. Sowmyaraga Vs Inspector General of Registration (Madras High Court)
In the matter of C. Sowmyaraga Vs Inspector General of Registration, the petitioner sought relief from the Madras High Court via a Writ Petition, aiming to remove the attachment entry made by the third respondent over the petitioner’s immovable property and subsequently allow the petitioner to enjoy the property without any encumbrances. The property in question was purchased by the petitioner on 02.11.2011, and the attachment was made on 31.03.2013.
The petitioner argued that they were a bona fide purchaser without any knowledge of encumbrances on the property at the time of purchase. However, it was revealed that the attachment was initiated subsequent to the sale, and the petitioner was unaware of any Income Tax proceedings or investigations by the Central Bureau of Investigation (CBI) against the previous owner.
The third respondent, through a counter affidavit, contended that the sale made by the previous owner to the petitioner was void as it occurred after the initiation of proceedings by the Income Tax Department. They provided details of assessments and penalties imposed on the previous owner for various assessment years, demonstrating that the transaction with the petitioner was made after receiving summons under the Income Tax Act.
After considering the arguments and evidence presented by both parties, the Madras High Court dismissed the Writ Petition. The court held that since the sale was made by the previous owner after the initiation of proceedings by the Income Tax Department and subsequent to the issuance of summons, the transaction was deemed void. Consequently, the petitioner was not entitled to the relief sought.
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