TRO cannot ignore or overrule NOC granted by ACIT after considering the facts in its entirety in respect of sale of immovable property and attach the said property on account of outstanding income tax dues:

Tax Recovery Officer (TRO) issued an order prohibiting and restraining original owner of an immovable property under consideration from transferring or charging the said property and the said order has been challenged by the petitioner who bought the said property from the original owner. On Writ, the Hon’ble High Court observed that the original owner having huge outstanding income-tax dues approached the ACIT for obtaining NOC to sell the said property. ACIT granted NOC subject to a condition that entire sale proceeds of the said property to the extent of income tax dues shall be remitted to the Dept. While granting such NOC, ACIT was fully aware of the fact that the sale proceeds were less than income-tax dues. The said NOC has not been even recalled. TRO couldn’t have ignored or overruled NOC granted by ACIT without any further process. It was thus held that the impugned order shall be set-aside subject to a condition that the entire sale proceeds shall be deposited with Dept. along with interest.

[VIKRAMSINH JILUBHA VALA - SCA 10847 of 2012 - GHC]