Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 2019 (11) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 1081 - SC - Income TaxFailed auctions - Property acquired by the Union of India in 1994 under Section 269UD(1) of the Income Tax Act, could only be sold in 2018 - appellant made an offer to the Central Board of Direct Taxes (hereinafter referred to as ‘CBDT’) to purchase the aforesaid property for a sum of ₹ 32.11 crores - HELD THAT:- As has been pointed out, several auctions were conducted from the year 1994, including an auction as recent as 27.03.2017 which failed to elicit a response from any buyer. Ultimately, the auction with the reserve price of ₹ 30 crores, on which the appellant bid was ₹ 30.21 crores, was kept in abeyance. The reason that is available from the record is in a Report dated 26.09.2017 in which it was pointed out that this figure was considerably lower than the figure offered by the appellant itself at ₹ 32.11 crores and that, therefore, a fresh auction be held. We cannot say that the aforesaid reason can be said to be, in any manner, arbitrary. After all, it was in public interest to see that the highest possible price be fetched for such properties. Further, we have also seen how at every stage valuation reports were submitted by reputed Valuers, first from Mumbai, and then from Chennai, and have no reason to doubt what has been stated to be the Fair Market Value in any of these reports. It may also be pointed out that though the appellant was given several opportunities to bid in the fresh auction conducted, ultimately, for reasons best known to him, he chose to refrain from participating in the fresh auction that was conducted. Reasons disclosed both in the Report dated 26.09.2017 and the letter dated 06.04.2018 from the Government of India, Ministry of Finance, to the Chief Commissioner of Income Tax, make it clear that there is no arbitrariness that is discernible in the entire auction process. This being the case, we dismiss this appeal and hold Shri Kavin Gulati, learned senior counsel, to the offer very fairly made to us. We may indicate that from the figure of ₹ 35 crores, which will be paid within a period of 12 weeks from today directly to the Union treasury, a sum equivalent to interest of 9 per cent on the amount of ₹ 7.78 crores, that is lying with the Union, calculated from the date on which it was deposited with the Union till today be substracted, and the net figure be handed over as aforesaid.
|