Distribution of Property
ashish
(Querist) 11 December 2009
This query is : Resolved
My Uncle and dad purchase the one property in joint name .Then my uncle has traseffered his share to my dad my notary in 1997. Same property attached by the Income department in 2005 for income tax demand outstanding of more than 25 lacs.
Our being joint family.Our uncle and my dad live together from thirty years. they dont have any property from there father .everything is being created by both of them. my uncle has made a decree order in 2007 that everything created by me only and for sake I have made some property in brother name. and my dad has signed the decree order before district court . Now we are living separately from my uncle .Now i come to know about this decree order after one year.
how can I legally challenge the order please guide me.
Is the decree is invalid as income tax department is already attached the property ?
Is any use of that Notarty paper of 1997?
Vineet
(Expert) 11 December 2009
The transfer made by your uncle in 1997 does not have any binding effect as the same was not registered. However, the notarized document may have some evidential value.
If the property was attached by Income Tax Department in 2005 against demands outstanding in the name of your father (I presume), then the agreement made in 2007 is sham and can be challenged by the Department itself being fraudulent in nature to defeat the purpose of law and Government interest.
You can produce all the facts to concerned Income Tax Authority and they will take necessary legal action which will be beneficial to you also. However, being the legal hair of your father, you will be liable to pay tax demands against him if you claim right on his property.
Raj Kumar Makkad
(Expert) 11 December 2009
Your father is still alive so his share is not going to be transferred in your name at this stage, even if the decree is set aside on the petition of IT department so it is better to intimate IT authorities about the decree despite of their attachment.
Attachment is a separate proceeding and subsequent decree has otherwise also no impact on their further action of making auction/sale to recover their outstanding dues.
