1(1) Where, during the pendency of any proceeding under this Act or after the completion thereof, but before the service of notice under rule 2 of the Second Schedule, any assessee creates a charge on, or parts with the possession (by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever) of, any of his assets in favour of any other person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the assessee as a result of the completion of the said proceeding or otherwise:
Provided that such charge or transfer shall not be void if it is made-
(i) for adequate consideration and without notice of the pendency of such proceeding or, as the case may be, without notice of such tax or other sum payable by the assessee ; or
(ii) with the previous permission of the 2 Assessing Officer.
(2) This section applies to cases where the amount of tax or other sum payable or likely to be payable exceeds five thousand rupees and the assets charged or transferred exceed ten thousand rupees in value.
Explanation.-In this section, "assets" means land, building, machinery, plant, shares, securities and fixed deposits in banks, to the extent to which any of the assets aforesaid does not form part of the stock-in-trade of the business of the assessee.
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1. Subs. by Act 41 of 1975, s. 73, for section 281 (w.e.f. 1-10-1975).
2. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer" (w.e.f. 1-4-1988).
Section 280B Offences triable by Special Court
Section 280C Trial of offences as summons case
Section 280D Application of Code of Criminal Procedure, 1973 to proceedings before Special Court
Section 281 Certain transfers to be void
Section 281B Provisional attachment to protect revenue in certain cases
Section 282 Service of notice generally
Section 282A Authentication of notices and other documents
Section 283 Service of notice when family is disrupted or firm, etc., is dissolved
Section 284 Service of notice in the case of discontinued business
Section 285 Submission of statement by a non-resident having liaison office