STREAMLINE FINVEST Vs. CHIEF COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE writ petitions (are) by a person who was the highest bidder in an auction sale conducted by the IT authorities who had put up for sale several parcels of properties they had acquired by pre-emptive purchase under Chapter XX-C of the IT Act, 1961. In terms of public auction notice published in the Sunday Times of India on 28th July, 1996 indicating the sale of nine items of the properties mentioned therein to take place on 21st Aug. , 1996 at conference hall, 2nd Floor, c. R. Buildings, Queens Road, Bangalore-1, amongst nine properties for sale on that day, the petitioner herein was the highest bidder in respect of the property figuring at serial Nos. 5 and 9. The petitioner had offered highest price participating in the auction bid in terms of the sale conditions which has been indicated in the notification.

(2.) IT is the plea of the petitioner that the petitioner had in respect of these two properties namely, no. 4/2-B, Hoodi Village, Mahadevapura Hobli, Bangalore South Taluk and Sl. Nos. 35 to 39 (Old No. 100), Mayamgutta, B. Narayanapura K. R. Pura Hobli, Bangalore, had deposited a sum of Rs. 9,80,300 on 24th Aug. , 1996 and Rs. 82,94,000 on 9th Oct. , 1996 corresponding with WP no. 39252/2002 with reference to property at SI. No. 9 of Annex. B of this writ petition and with reference to property at SI. No. 5 i. e. , Sy. No. 4/2-B, Hoodi Village, Mahadevapura Hobli, bangalore South Taluk subject-matter of WP No. 8931/2003. It is also averred that the petitioner did not deposit any further amounts thereafter i. e. , did not remit the balance sale price as was required in terms of auction sale conditions and even otherwise, as a buyer at an auction sale is required to deposit after having bid the amount offered the highest price and having so eliminated the other bidders from competition.

(3.) IT is thereafter, several developments have taken place which began as a consequence of non-deposit of balance sale consideration by the petitioner.