The tax assessment of Mr. Pramod was completed on 25-12-2023 and the tax due was determined as 115 lakhs. The assessee has the following (i) Bank…

When an assessee is in default or is deemed to be in default in making a payment of tax, the TRO may draw up under his signature a statement in the prescribed form specifying the amount of arrears due from the assessee and shall proceed to recover from such assessee the amount specified in the certificate by inter alia attachment and sale of the assessee's movable or immovable property. The assessee's movable or immovable property shall include any property which has been transferred, directly or indirectly by the assessee to his spouse or minor child or son's wife or son's minor child, otherwise than for adequate consideration, and which is held by, or stands in the name of any of the persons aforesaid. In the present case, Mr. Pramod had transferred his land 5 years ago to his son who was 30 years old at that time. He also gifted a diamond necklace to his son's wife on 5.10.2021. He also has bank fixed deposits, receivables from T & Co. Ltd. The Tax Recovery Officer can proceed to recover the tax by attaching - (i) bank fixed deposits, (ii) receivables from T & Co. Ltd.; He can also proceed to recover the tax by attaching the diamond necklace gifted to his son's wife. However, he cannot proceed to recover the tax by attaching the land which he transferred to his son, since at the time of transfer, his son was major.