Law: Income Tax Act, 1961

Section: 269

Income tax----Purchase of immovable property by Central Government Adjustment of consideration against arrears of tax can be done only after giving intimation to the person entitled to the consideration Indian Income tax Act, 1961, S. 269 UG. Where immovable property is purchased by the Central Government under the provisions of Chapter XXC, section 269 UG of the Indian Income tax Act, 1961, makes it clear that the consideration can be adjusted against arrears of tax only after giving an intimation in this behalf to the person entitled to the consideration. JUDGMENT BAKTHAVATSALAM, J. The prayer in the writ petition is to issue a writ of certiorarified mandamus and to call for the records of the first respondent dated June 28, 1988, and further direct them to pay the balance amount of Rs. 4,59,325. The petitioner was the owner of a house property at No. 10, Rogers Road, Richards Town, Bangalore, and it entered into a sale agreement dated March 12, 1988, with a person in Bombay in respect of the property. The petitioner applied to the appropriate authority under the Income tax Act for obtaining a no objection certificate under Chapter XXC of the Act. But by order dated May 23, 1988, the Department acquired the property for a sum of Rs. 23,00,000 under section 269UD(1) of the Income tax Act, 1961. By impugned letter dated June 28, 1988, the petitioner was informed that the amount of consideration payable to him will be reduced by Rs. 4,59,325 being tax arrears payable to the Department. I have adjourned this matter many times in order to facilitate the Department to file the counter affidavit. Since no counter is forthcoming, the main writ petition itself is taken up for hearing by consent. Further, I am of the view that since the facts are admitted, no counter is also necessary and the question turns purely upon an interpretation of the section under the Act. Section 269UG(1) of the Act reads as follows: "The amount of consideration payable in accordance with the provisions of section 269UF shall be tendered to the person or persons entitled thereto, within a period of one month from the end of the month in which the immovable property concerned becomes vested…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492