Income Tax Dept has No Statutory Power to Cancel Sale Deeds : Madras HC Quashes Attachment Order...

The Madras High Court has quashed an attachment order, ruling that the "Income Tax Dept has no statutory power to cancel sale deeds." The court clarified that the Income Tax Act provides powers for attachment of property to recover tax dues, but it does not grant the department the authority to unilaterally cancel or invalidate a registered sale deed. Such an action falls outside its statutory mandate and infringes upon property rights. This ruling reinforces the limits of the Income Tax Department's powers concerning property transactions.