Law: Income Tax Act, 1961

Section: 269UD

JUDGMENT H.L. Gokhale, J. - Heard Ms. Khan for the petitioners and Mr. Asokan for the respondents. 2. Petitioner Nos. 1 and 2 were owners of a flat-bearing No. 902 on the 9th floor of "C" Wing in Kanti Apartment, Mount Mary Road, Bandra (West), Mumbai-400 050. They were interested in selling the said flat. They entered into an agreement on 6-10-1992 to sell the same to respondent Nos. 3 and 4. The flat was to be sold for Rs. 19 lakhs. Thereafter as per the requirement of Chapter XX-C of the Income-tax Act, 1961, they filed the necessary Form 37-I for approval of the said transaction on 15-10-1992. 3. Petitioner Nos. 3 and 4 received a notice dated 15-12-1992 from the Appropriate Authority. This notice stated that they should show cause as to why an order should not be made in their case under section 269UD(1) of the Income-tax Act. They were asked to attend before the Appropriate Authority on 22-12-1992. 4. The petitioners accordingly attended before the Appropriate Authority and filed their written statement on 22-12-1992. In this statement, they cited two instances of transaction in the same building. One was Flat No. 104 on the first floor having an area of 915 sq.ft. built-up, which was sold for Rs. 23 lakhs in June 1992 and the other one was a flat on the 10th floor in "C" Wing having an area of 615 sq.ft. which was sold in August 1992 for Rs. 19 lakhs. The petitioners appeared before the Appropriate Authority through their Chartered Accountant and the submissions of the Chartered Accountant were noted. The Appropriate Authority passed an order holding that there was an under-valuation and, therefore, directed compulsory acquisition of the said flat by its order passed on 30-12-1992. The reasons were enclosed in the Annexure thereto. It is this order which is challenged in the present petition. 5. The petition came up for admission on 28-1-1993 when Rule was issued and interim order was passed in terms of prayer (c) of the petition which restrained the respondents from taking possession of the concerned flat. 6. Today when the matter reached for final hearing, Ms. Khan for the petitioners pointed out that although four instances are referred in the reasons…

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