TMI Blog1999 (10) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... the orders is identical both the petitions can be conveniently disposed of by a common order. The facts that are material and relevant for deciding these two petitions are as under : Flats Nos. 13 and 14 in the building of Belmont Co-operative Housing Society were owned by respondents Nos. 5 and 6 in both these petitions. The petitioner entered into an agreement to purchase both these flats with their respective owners on January 28, 1994. As required by the provisions of Chapter XXC of the Income-tax Act, application in Form No. 37-1 was submitted to the appropriate authority. The appropriate authority on March 31, 1994, issued show-cause notices to the petitioner as also the owners of the two flats asking them to show cause why both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the flat and the amount of consideration. The show-cause notice to the petitioner in relation to Flat No. 14 reads as under : "You have submitted Form No. 37-1 on January 31, 1994, for the property having description as per col. No. 7 of annexure to the form as follows : CTS No. 2756 forming part of Plot No.5 of Sur. No. 132, Bhambhurda, Shivaji Nagar, Pune. 2. The apparent consideration for the same has been declared Rs. 16,13,700. 3. You are required to show cause as to why the property should not be purchased under the provisions of Chapter XXC of the Income-tax Act, 1961. 4. Your reply should reach this office latest by April 11, 1994, at 3.00 p.m. positively, by speed post. If you desire personal hearing, you may attend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In order to give an effective opportunity of showing cause and being heard to the persons who are likely to be adversely affected by the order, it is necessary that the authority discloses in the show-cause notice the material on the basis of which it has reached such tentative conclusion and the reason for reaching the tentative conclusion. A perusal of the show-cause notice issued in the present case, as observed above, shows that the appropriate authority in the show-cause notice does not even say that it has reached the tentative conclusion that the transaction has been undervalued. No reasons have been disclosed for issuing the show-cause notice nor is the material that was considered by the appropriate authority to reach that tenta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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