TMI Blog1991 (3) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... tter dated December 18, 1990 copy of the letter is annexed as exhibit 'E' to the petition. The facts giving rise to the passing of the order are not in dispute and are required to be briefly stated to appreciate the grievance of the petitioner. The petitioners are owners of immovable property bearing City Survey Nos. A/613, 614, 615 and 616 admeasuring about 1581.71 sq. meters situate at Chinchpokli Road, Bandra (West), Bombay. The petitioners are also owners of property bearing House No. 7 and Houses Nos. 5 and 5A. The petitioners had entered into an agreement of sale dated November 12, 1980, with one Bhawanji Meghji Gala for a consideration of Rs. 12.5 lakhs. It appears that the parties did not take any further steps in pursuance of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the functions of an appropriate authority under Chapter XX-C. It is not in dispute that in accordance with the requirement of section 269UC the requisite statement in respect of the transfer proposed by the petitioners in favour of respondent No. 4 was duly filed before the appropriate authority. Section 269UD(1) provides that the appropriate authority, after the receipt of the statement may, notwithstanding anything contained in any other law or any instrument or any agreement for the time being in force, and for the reasons to be recorded in writing, make an order for the purchase by the Central Government of such immovable property at an amount equal to the amount of the apparent consideration. This section confers powers upon the appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad also issued a general power of attorney in favour of Gala and that power of attorney is also in operation. The appropriate authority communicated that as the agreement with Gala has not been cancelled, the petitioners have no transferable interest and, therefore, Form No. 37-I cannot be treated as valid. Shri Dastoor, learned counsel appearing on behalf of the petitioners, submitted that the decision of the appropriate authority is wholly incorrect and the appropriate authority took into consideration extraneous considerations while exercising powers under section 269UD of the Act. We find considerable merit in the submission of learned counsel. The provisions of Chapter XX-C of the Income-tax Act confer powers upon the appropriate autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certificate. It is not permissible to examine the issue of title to the property and then hold that Form No. 37-1 filed by the transferor and the transferee is not valid. In our judgment, the action of the appropriate authority in the present case is entirely unsustainable and contrary to law and it, therefore requires to be struck down. Shri Dastoor submits that as the appropriate authority has failed to exercise jurisdiction under sub-section (1) of section 269UD within the period of two months from the end of the month in which the statement was received in accordance with the proviso to sub-section (1), the jurisdiction of the appropriate authority to direct purchase of the property by the Central Government stands extinguished and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
