Rakesh Garg, J. - (1.) BY way of the present writ petition the petitioners seek the quashing of proceedings under Section 281(1) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), and the consequential act, i.e., attachment order dated June 7, 2004 (annexure P -1), passed by respondent No. 3 under Rule 48 of the Second Schedule to the Income Tax Act, 1961, alleging the same as illegal and arbitrary on the part of the respondents.
(2.) AS per the averments made in the writ petition, the petitioners took the property on 99 years' lease from one Ram Niwas s/o Sh. Ram Chander son of Lachhman, resident of Mohalla Sainian, Hisar Tehsil and Distt. Hisar who had purchased this property from one Chandrawali widow of the late Shri Nand Ram, resident of Mohalla Sainian near Saini Athai, Hisar. In pursuance of the registered lease deed and with a view to get permanent and perpetual title over the said property three sale deeds were executed in favour of the petitioners on March 4, 2003, March 4, 2003 and June 13, 2003, for the aforementioned property at a price of Rs. 4.5. lakhs per acre. It is the case of the petitioners that at the time of buying the aforementioned property they had made enquiries from the office of the Registrar and had verified the antecedents and purchased the property by paying all the statutory dues of stamp duty, etc. It is also the case of the petitioners that in order to get the finance and to further check the clear title of the property, the petitioners had also seen the Income Tax clearance certificate issued on July 22, 1999, by the Income Tax Department, Hisar under Section 230A(1) of the Act before the Sub -Registrar, Hisar, permitting the registration of the sale deed of the land in question by Smt. Chandrawali to Sh. Ram Niwas. The Income Tax clearance certificate was a prerequisite of the law for the execution of the sale deed by Smt. Chandrawali in favour of Sh. Ram Niwas. This Income Tax clearance certificate contained the full identity of the seller Smt. Chandrawali, her address as well as full particulars of the buyer Ram Niwas and complete description of the land required to be sold and also the rate and the sale price of the land in question. Thus, the sale deed of the land in question of Smt. Chandrawali to Sh. Ram Niwas was executed with the permission of the Income Tax Department, Hisar and was registered at Serial No. 2934 dated July 22, 1999. Mutation was also sanctioned by the Revenue Department in favour of Ram Niwas, vide order dated July 7, 2000, by the Assistant Collector, Grade II, Hisar. Thus, the petitioners found that the title of Ram Niwas was free from all encumbrances, marketable, undisputed and thereafter, the petitioners bought the land with the help of loans sanctioned and provided by the Haryana State Co -operative Agricultural and Rural Development Bank, Hisar.
(3.) IT is further the case of the petitioners that they were shocked to know on August 3, 2004, that the aforementioned property of the petitioners had been attached in terms of the order dated June 7, 2004 (annexure P -1) issued by the Tax Recovery Officer, Income Tax Department, Hisar to the Tehsildar, Hisar, by invoking the provisions of Section 281 of the Act. Vide this order the Tax Recovery Officer, Income Tax Department, Hisar, has also intimated the Tehsildar, Hisar that the transfer of land dated July 22, 1999, is null and void and the present owners be not allowed to part with their possession over the properties. It is the case of the petitioners that on coming to know about the attachment order annexure P -1 they immediately submitted the representation dated August 11, 2004, to the respondents -authorities for setting aside the said order dated June 7, 2004, vide which the land of the petitioners has been attached and further for removal of the attachment of this land from the provisions of Section 281 of the Act. In the said representation, the petitioners have clearly stated that they are the bona fide purchasers of the land in question for adequate consideration and without notice and further that before buying the land in question they had examined the original sale deeds and the Income Tax clearance certificate dated July 22, 1999, issued by the Department in favour of Sh. Ram Niwas and found it to be in order. It was also stated by the petitioners that there is no tax liability against them and the Income Tax Department is estopped by its own act and conduct from passing the impugned order, firstly, because they did not pass any order for provisional attachment of the land in question before initiating the alleged proceedings for assessment of Income Tax liability of Smt. Chandrawali as provided under Section 281B of the Act and, secondly, because the Department itself issued the Income Tax clearance certificate on July 22, 1999, to Smt. Chandrawali and permitted her to sell the land in question to Ram Niwas. It is also stated by counsel for the petitioners that the proviso to Section 281 of the Act covers the case of the petitioners as the land in question was purchased for adequate consideration and without notice of the pendency of proceedings against Chandrawali and with the previous permission of the Assessing Officer. The petitioners have further alleged that they have received no reply in pursuance of their representation dated August 11, 2004, submitted to the respondent -authorities and instead the respondent -Department filed a civil suit in the civil court, Hisar, against the petitioners for declaration to the effect that the Department is entitled to attach and sell the agricultural land for the recovery of demand of Income Tax assessed against Nand Ram (deceased) and Smt. Chandrawali who is the legal heir/representative as these sales and lease are void, illegal, fraudulent and the same have been made to defraud the Tax Recovery Officer and as such there is no binding effect on the rights of the respondents for the purpose of recovery of demand of Income Tax assessed under the Income Tax Act, 1961, by way attachment and the sale of the property till the satisfaction of all the dues, therefore, all the transfers made by Smt. Chandrawali be declared void.;