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2021 (10) TMI 130 - HC - Income TaxOrder u/s 269UD by appropriate authority for purchase by Central Government of immovable property - Default in approval by the Charity Commissioner - HELD THAT:- As show cause notice, it is bereft of any materials or details. It does not contain any material to show as to why the appropriate authority felt that an order under Section 269 UD(1) was required to be made. Reply was fled on 22 April 1993 on behalf of the transferor trust and petitioner. In the impugned order the appropriate authority has relied upon a valuation report. Admittedly the same was not provided to petitioner. Moreover, the appropriate authority has given six sale instances but none of these details were provided to petitioner with the show cause notice or at any stage. The appropriate authority has accepted that the Charity Commissioner has accorded his sanction for sale of the said bungalow but the appropriate authority simply dismisses the same by saying that the order passed by the Charity Commissioner only has persuasive effect but is not binding. In the impugned order the appropriate authority says that even if the bungalow had remained unoccupied and required heavy repairs, in its opinion, this could affect the price only marginally, say to the extent of ₹ 100/- per sq.ft. which amount would be sufficient to renovate and beautify the row house. But there is nothing to show how they arrived at the figure of ₹ 100/- per sq.ft. No opportunity was given to petitioner to respond to said renovation cost. It is settled law that issuance of a show-cause notice is not an empty formality. The appropriate authority should give to the person likely to be affected by the order proposed to be made a notice of the action intended to be taken, inform him about the materials on the basis of which the appropriate authority proposes to take action for preemptive purchase and give a fair and reasonable opportunity to such person to represent his case and to correct or controvert the material sought to be relied upon against him Charity Commissioner, under the Bombay Public Trusts Act, is required to give his sanction bearing in mind interest, benefit and protection of the trust. Respondents have not fled any reply. Mr. Kotangale submitted that there was no requirement to give details of the sale instances referred to in paragraph 5 of the impugned order to petitioner because three of the instances are of bungalows in the same complex where the said bungalow is situated and therefore, petitioner should be deemed to be aware of the sale instances - We are not impressed by Shri Kotangale’s submissions. First of all, that is not the case of the appropriate authority in the impugned order. Secondly, the appropriate authority is duty bound to give all materials on the basis of which it proposes to take action of pre-emptive purchase. It cannot absolve of its duty and responsibility to give all materials on the basis of which it proposes to take action. It cannot give a vague show cause notice and thereby deprive petitioner of a reasonable opportunity to effectively correct or controvert the material sought to be relied against him. The impugned order dated 28th April, 1993 is hereby quashed and set aside.The appropriate authority is directed to issue ‘no objection certificate’ under sub-section (1) of Section 269UL of the Act to petitioner within four weeks of receiving a copy of this order
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