TMI Blog1994 (10) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... ng No. 5-9-1112/1 and 2, Church Road, Gunfoundry, Hyderabad. In respect of both the premises the owner, Smt. Abidunnissa Begum, entered into two agreements of sale. With regard to premises No. 5-9-1112/1, the agreement of sale stipulated a consideration of Rs. 12,20,000 and with regard to premises No. 5-9-1112/2, the consideration stipulated in the agreement of sale was Rs. 15,80,000. The vendor as well as the two vendees informed the income-tax authorities in Form No. 37-I about the transactions for the purpose of obtaining clearance certificate. At that stage, the Appropriate Authority passed the two impugned orders on September 23, 1991, under section 269UD(1) of the Income-tax Act, 1961, for purchasing the premises in question, without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of one of the premises in question and the petitioner in Writ Petition No. 14293 of 1991, has instituted O. S. No. 5208 of 1991 in the Court of the Fifth Assistant Judge, City Civil Court, Hyderabad, for permanent injunction against the income-tax authorities restraining them from interfering with its possession. An interim injunction was granted, it is stated before us, in I. A. No. 981 of 1991, which was subsequently vacated. It is the case of the Department that possession of the premises occupied by the Abids Recreation Club was taken over on October 30, 1991. But, learned counsel for the Club, Mr. R. Vijayanandan Reddy, says that possession was not handed over by the club and its things are still there in the premises and the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ples of natural justice is the pragmatic requirement of fair play in action. In our view, therefore, the requirement of an opportunity to show cause being given before an order for purchase by the Central Government is made by an Appropriate Authority under section 269UD must be read into the provisions of Chapter XX-C. There is nothing in the language of section 269UD or any other provision in the said Chapter which would negate such an opportunity being given. " In Rambai Manjanath Nayak v. Union of India [1993] 201 ITR 422 (SC), Chapter XX-A of the Income-tax Act (which was later substituted by Chapter XX-C) came up for consideration. One of the questions decided by the Supreme Court was whether a tenant was entitled to notice when a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 42 comes into operation and consequently an order passed without notice to them to appear becomes invalid. " Having regard to the aforesaid precedents, we are inclined to hold that the tenants and the transferees are entitled to notice before an order is passed under section 269UD(1) of the Income-tax Act. Mr. S. R. Ashok, learned standing counsel for the Income-tax Department, relying on certain observations occurring in C. B. Gautam's case [1993] 199 ITR 530 (SC), contends that the transferees and the tenants are not entitled to notice and hearing. The following are the observations on which learned counsel placed reliance (page 562) : " We may clarify that, as far as completed transactions are concerned, namely, where, aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . What will be the outcome of such a representation is a matter outside the purview of this batch of writ petitions. In the result, the two impugned orders are set aside and Writ Petitions Nos. 16196, 12942, 16185 and 14293 of 1991 are allowed. Within two weeks from the date of receipt of a copy of this order, the Appropriate Authority under Chapter XX-C of the Income-tax Act shall issue notices to the petitioners in the above four writ petitions and within two weeks from the date of receipt of notices, the petitioners shall submit their objections. So far as Writ Petitions Nos. 231 of 1992 and 15382 of 1991, filed by the owner of the premises, are concerned the Appropriate Authority has already deposited the consideration amount in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
