9911796707
TMI Blog2005 (9) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... more and accordingly ordered preemptive purchase of the said flat. Petitioner No. 1 is a private limited company carrying on business as builders and contractors. Petitioner No. 2 is a director and shareholder of petitioner No. 1 company. By an agreement dated June 7, 1993, the petitioners agreed to sell to respondent No. 5 a flat admeasuring 1112 square feet bearing No. 1102/1202 in Parasrampuria Tower No. 6, Oshiwara Village, Near Millat Nagar, Lokhandwala Complex, Andheri (W), Bombay - 400 058 for a lump sum price of Rs. 28,56,000. Admittedly, the said building was under construction and the payment schedule as per the said agreement was as follows: (i) Rs. 1,50,000 on execution of the agreement, (ii) Rs. 5,00,000 within 45 days of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 5, which is adjacent to Parasrampuria Tower No. 6, have been sold at the material time at the rate of approximately Rs. 2,000 per square ft. whereas the flat in question has been sold by the petitioners at a higher value of Rs. 2,259 per square ft Since the appropriate authority has granted no objection certificate to the flats sold at Parasrampuria Tower No. 5, it was stated that the flat sold by the petitioners in Parasrampuria Tower No. 6 at a higher price could not be said to be undervalued and accordingly requested that the show-cause notice be dropped. By the impugned order dated September 21, 1993, the appropriate authority rejected the contention of the petitioners and held that it is a fit case to exercise powers under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplex and in fact the price of the flat sold in Parasrampuria Tower No. 5 was less than the price at which the petitioners have sold the subject flat. Therefore, it was not open to the appropriate authority to hold that the flat sold by the petitioners to respondent No. 5 was undervalued. Thirdly, he submitted that under section 269UG of the Income-tax Act, it was obligatory on the part of the Central Government to tender the amount of apparent consideration to the petitioners within the period set out therein, failing which, under section 269UH of the Income-tax Act, the property purchased under section 269UD(1) would revest in the petitioners. In the present case, after the order passed under section 269UD(1), the amount payable thereon h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings for pre-emptive purchase of the flat in question were initiated presuming undervaluation on the basis of the sale instances at Green Acres, as more particularly referred to in the show-cause notice. However, in the impugned order, the appropriate authority has accepted the contention of the petitioners that the sale instances at Green Acres are not comparable as the flats in Green Acres are luxurious flats with facilities like swimming pool, health club, play ground, etc. Once the very basis on which the tentative belief of undervaluation entertained by the appropriate authority has vanished, there being no other material available to the appropriate authority to hold that the flat sold by the petitioners was undervalued, an or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... priate authority was not justified in rejecting the sale instances pointed out by the petitioners and holding that the flat sold by the petitioners was undervalued. Apart from the above, in the present case, admittedly, the apparent consideration determined under the impugned order has not been tendered to the petitioners and the same has been deposited in the account of the appropriate authority. The only reason given by the respondents for not tendering the amount is that, on the date of purchase the building was incomplete and, therefore, the amount has not been tendered to the petitioners. As held by the apex court in the case of Dr. A.K. Garg [2002] 256 ITR 660 (SC) it was mandatory on the part of the appropriate authority to tender t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
