CHAPTER
VIII
45[Transfers to defraud revenue to be void.
34B. (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
to the Income-tax Act as made applicable to this Act by section 32, any
assessee creates a charge on, or parts with (by way of sale, mortgage, gift,
exchange or any other mode of transfer whatsoever) the possession 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 46[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.]