Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 269-UD and 2(47) 1961-Chapter XX-C-Section 269-UC |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Income Tax Act, 1961-Chapter XX-C-Section 269-UC, 269-UD and 2(47)-Purchase of immovable property by Central Government in cases of transfer involving under valuation-Appropriate Authority passing purchase orders-High Court quashing the first purchase order-Challenge to the second purchase order rejected-Validity of-Held, in the circumstances of the case, High Court was right in rejecting the challenge to the second purchase order.One L and her sisters- agreed to sell certain property jointly owned by them, to the appellants. L died before the conveyance deed was executed. On the basis of L's will, the executor entered into fresh agreement with appellants to sell L's one-third undivided share. Other sisters appointed appellants as their power of attorney, who sold demarcated portions of the property to their nominees. Subsequently, Chapter XX-C of Income Tax Act came into force which provided for the compulsory purchase of immovable properties in certain cases of transfer by Central Government. Thereafter, appellants and the executor filed a joint statement under section 269-UC in Form 37-1 in respect of L's share. The Appropriate Authority did not accept the statement and passed a filing order refusing to exercise its power under section 269UD(1) or 269UL(3), which was accepted by the parties. The appellants and the executor then filed a second statement. The Appropriate Authority accepted the same and passed a purchase order for purchase of the property. Within a month the Central Government deposited the consideration amount and possession of property was handed over to it. Aggrieved, the appellants filed writ petition for setting aside of the purchase order. High Court quashed the first purchase order. The Appropriate Authority then passed a second purchase order. The appellants filed a writ application challenging the second purchase order. High Court rejected the same. Hence the present appeal.The appellants contended that the first purchase order was issued beyond the prescribed time; that in the second purchase order the Appropriate Authority had wrongly purported to purchase a demarcated share in the premises which was neither the subject matter of agreement nor the statement filed under section 269-UC; that oral partition was impermissible in law; that complete transfer had taken place before Chapter XX-C came into operation in the State, thus the Appropriate Authority could not initiate proceedings in respect of L's property; that the consideration amount reflected the true market value of the property; and that the Central Government had not deposited the consideration money nor paid it to the transferor. The respondents contended that it was not open to the appellants to contend that the first purchase order had been issued beyond the period of limitation since they had never raised this issue in the writ petition; that the appellants had accepted the 'filing order' of the Appropriate Authority and submitted a second statement without protest; that in terms of the direction issued in C.B. Gautam 's case the date of disposal of the appellants' first writ petition was to be taken as the date of filing of the statement and, therefore, the Appropriate Authority had issued the second purchase order within the statutory period; that the appellants had admitted that the property had been orally partitioned between the three owners and also the sale deeds of the other two owners stated so; that the appellants had given up the argument that complete transfer had taken place under Section 2(47) of the Act prior to coming into force of Chapter XX-C which had been recorded by High Court; that the documents on record and finding of the Appropriate Authority shows that appellants had not taken possession of L's share pursuant to the agreement of sale; that they had entered into possession of demarcated portions of L's sisters' property after the execution of sale deeds by the appellants; that Appropriate Authority had considered the material on record which showed that the stated consideration amount did not represent the true market value of the property; and that the Central Government had deposited the purchase money with the Appropriate Authority which had been subsequently withdrawn by the transferor against a bank guarantee executed by the appellants and this issue was not raised by the appellants in the writ petition. |
Judge | Hon'ble Ms. Justice Ruma Pal |
Neutral Citation | 2002 INSC 573 |
Petitioner | Hans Raj Agarwal And Anr. |
Respondent | Chief Commnr. Of Income Tax And Ors. |
SCR | [2002] Supp. (5) S.C.R. 648 |
Judgement Date | 2002-12-20 |
Case Number | 2121 |
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