Law:

Section:

Unless show-cause notice discloses reason or basis to reach prima facie or tentative conclusion that transaction is under- valued or there has been attempt to evade tax, no order for compulsory purchase can be made under section 269UD Section 269UD of the Income-tax Act, 1961 - Purchase of immovable property by Central Government - Order by appropriate authority - Petitioners challenged order of compulsory purchase of land issued by appropriate authority on ground that show-cause notice issued upon them neither disclosed reasons as to why authority had reached a prima facie or tentative conclusion that transaction had been undervalued and that there had been an attempt to evade tax nor did they disclose material on basis of which such a tentative conclusion had been reached - Whether in view of decision of Division Bench of High Court in Jagdish Electronics (India) (P.) Ltd. v. Appropriate Authority [2000] 108 Taxman 587 / 242 ITR 326 (Bom.) as affirmed by Apex Court, show-cause notices and consequent order passed under section 269UD(1) were bad, illegal and in breach of principles of natural justice and, therefore, were liable to be quashed and set aside - Held, yes CASES REFERRED TO C.B. Gautam v. Union of India [1993] 199 ITR 530/[1992] 65 Taxman 440 (SC) [Para 3], Mrs. Nirmal Laxminarayan Grover v.Appropriate Authority [1997] 223 ITR 572/[1996] 85 Taxman 488 (Bom.) [Para 3], Jagdish Electronics (India) (P.) Ltd. v. Appropriate Authority [2000] 242 ITR 326/ 108 Taxman 587 (Bom.) [Para 3] and Appropriate Authority v. Jagdish Electronics (India) (P.) Ltd.[2003] 264 ITR 468 (SC) [Para 5]. Mrs. Shobha Jagtiani for the Petitioner. Asokan and T.C. Kaushik for the Respondent. JUDGMENT V.C. Daga, J. - These two petitions are directed against the common order passed by the Appropriate Authority, Ahmedabad, under section 269UD(1) of the IT Act ('the Act' for short) for compulsorily purchasing the piece and parcel of a land at Mouje Aund, District Pune, bearing old plot No. 374/375 and new No. 228 and bearing old survey number and sub-division Nos. 3 to 55, 57, 58, 61 to 78, 135, 136 and new survey No. 74 admeasuring 1,000 sq. mtrs. in Sindh Co-op. Soc. Ltd. Aund, Pune…

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