The High Court of Andhra Pradesh & Telangana in the case of Leo Edibles & Fats Ltd held that “The Income-tax Department does not enjoy the status of a secured creditor, on par with a secured creditor covered by a mortgage or other security interest, who can avail the provisions of section 52. At best, it can only claim a charge under the attachment order, in terms of section 281 of the Act of 1961″.
To download the complete order, Leo Edibles & Fats Limited vs The Tax Recovery Officer
