Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (9) TMI 560 - BOMBAY HIGH COURT

2016 (9) TMI 560 - BOMBAY HIGH COURT - TMI - Demand of unearned incremental charges - whether payment of unearned incremental charges demanded by the Collector of Mumbai is the responsibility of the Appropriate Authority as the assignor of the leasehold interest or of the Petitioners as the auction purchaser? - Held that:- The relevant clause of the lease deed gave an option to the Collector to require payment of half unearned incremental charges in the event of any assignment or transfer. The C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ut any substance. - Writ Petition No. 2868 of 1991 - Dated:- 1-9-2016 - M. S. Sanklecha And S. C. Gupte, JJ. Mr. D.V. Deokar, Advocate and Ms. Jaylaxmi C. Gaud, i/b. M/s. Parimal K. Shroff & Co., for the Petitioners Ms. Jyoti Chavan, AGP - Mr. Abhay Ahuja, a/w. Mr. Ranit Basu, for the Respondent JUDGMENT ( Per S.C. Gupte, J. ) This petition is filed under Article 226 of the Constitution of India by Petitioners, who are auction purchasers of a property acquired by the Appropriate Authority un .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

strial 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 between Superphone and one M/s. Scitech Center ( Scitech ), Superphone agreed to sell, transfer and assign this property for a consideration of ₹ 64,19,700/to Scitech. In pursuance .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on, the Petitioners, as highest bidders in the auction sale, were declared the purchasers of the property. The Petitioners paid the purchase price to the Appropriate Authority and were put in possession of the property. Subsequent to this purchase, whilst the matter of execution of the conveyance was pending, the Collector of Mumbai raised a demand for ₹ 3,42,000/as unearned incremental charges payable to the Collector in accordance with the terms of the original lease consequent upon the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

allenged 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 Collec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arned increment in the event of any assignment underletting or transfer as above whether out right or as a result of an unredeemed mortgage and every such assignee, underlessee or transfer or shall use the said plot only for the purpose of which it has been let out under the terms hereto. It is the case of the Appropriate Authority that the property was auctioned by the Income Tax Department on as is where is basis and any liability accruing subsequent to the sale or any liability coming to the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

The relevant conditions of the auction sale, which are not in 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

elevant laws/regulations etc. as the case may be. In accordance with these conditions, it is only the outstandings known to the IT Department, which have to be announced at the time of the sale. The sale itself is on as is where is basis. If any demand is made towards any outstandings pertaining to the property, which were not known at the time of the auction, the responsibility to honour such demand is clearly that of the auction purchaser. The clause unequivocally requires the purchaser to pay .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt in writing of the Collector of Bombay or Additional Collector, as the case may be, for effectuating the transfer of the auction premises and to pay any demand of unearned increment is that of the assignors. The submission is that the Appropriate Authority, after vesting of the property 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version