ORIENTAL LONGMAN LTD Vs. UOI

JUDGEMENT

(1.) THE petitioner, a company, has challenged the order dated 20th December, 1990 passed by the Appropriate Authority under Chapter XXC of the Income Tax Act, 1961 (Act, for short). The impugned order states that by virtue of power vested, the Appropriate Authority under Section 269UD(1) the Central Government had exercised itï¿ 1/2s right to purchase immovable property consisting of 1100 square feet on the 2nd floor in the building at 6, Jantar Mantar Road, New Delhi.

(2.) LEARNED counsel for the petitioner submits that the impugned order deserves to be set aside and quashed on two grounds, namely, that it is a non-speaking order and does not set out and give any reasons and secondly, Chapter XXC is not applicable to the transaction in question between the petitioner and respondent Nos. 4 and 5, namely, Ansal Properties and Industries Limited and Satyawati Dhawan.

(3.) THE respondent No. 5 had entered into an agreement with Competent Builders dated 4th September, 1979. As per the said agreement, the aforesaid builder was to construct a multi-storeyed building which was to be sold to third parties as per the terms and conditions set out therein. The petitioner herein applied for allotment of space in the proposed building and was issued allotment letter dated 6th May, 1980 on the price stated. The original allotment letter has been placed on record and stipulated that at the time of booking the allottee shall pay 20% price at the rate per square feet mentioned in the allotment letter. The allotment letter had prescribed a schedule of payment by the allottee, which was dependent upon the stage of construction. There were various other clauses in the allotment letter but these are not relevant for the purpose of the present adjudication.