9911796707
TMI Blog2016 (9) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... s a decision of the Appropriate Authority calling upon the Petitioners to pay 'unearned incremental charges' demanded by the original owner of the property, namely, Collector of Mumbai in respect of the property. 2. The short facts of the case may be stated as follows :- The petition concerns an immovable property, being leasehold Plot No.100 situated in Government Industrial Estate at Kandivili, Mumbai along with the industrial building constructed thereon. This property was given on lease by the Government of Maharashtra through Additional Collector, Mumbai Suburban District to one M/s. Superphone India Ltd. ("Superphone") for a term of 30 years at an annual rent and on terms and conditions set out in the lease. By an agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chaser and called upon the Petitioners to pay the same so as to obtain the necessary permission of the Collector for execution of the deed of conveyance. This notice/demand is challenged by the Petitioners in the present petition. 3. At the outset it is important to note that the Petitioners do not challenge the demand of unearned incremental charges raised by the Collector of Mumbai per se. What they challenge is the fastening of the liability to pay such charges on the Petitioners as auction purchasers. It is their case that these charges ought to be paid by the vendor, i.e. the Appropriate Authority. 4. The demand of unearned incremental charges is made by the Collector in pursuance of a stipulation contained in the original lease deed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n dispute, are set out below : " 12. All expenses for conveyance including legal charges, stamp duty and registration fees, as applicable, will have to be borne but the purchaser. The purchaser will also have to pay all out-standings pertaining to the property. Details of outstandings known to the I.T. Department will be announced at the time of the auction." "16. The properties are sold in the same state and condition as they stand at the time of completion of sale. The said properties shall remain at the sole risk of the purchaser from the date of his taking possession or signing the conveyance deed, whichever is earlier." "17. The intending purchaser shall abide by the orders of the Government of Maharashtra, passed form time to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Chapter XXC of the Income Tax Act, steps into the shoes of the assignors, namely, Superphone. We are afraid that is not a correct reading of the law. The vesting has occurred in the present case prior to the decision of the Supreme Court in the case of C.B. Gautam vs/ Union of India (1993) 1 Supreme Court Cases 78 and the amendments introduced by Finance Act, 1993 to the Income Tax Act after that case. Such vesting as on the material date is free of any encumbrances. There is no question, in the premises, of the Appropriate Authority being subjected to any of the commitments or obligations of the original assignors. 7. The relevant clause of the lease deed, quoted above, gave an option to the Collector to require payment of half unea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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