JAWAHAR LAL Vs. COMPETENT AUTHORITY IAC

JUDGEMENT

(1.) This petition, under art. 226 of the Constitution of India, is directed against the notice dated July 26, 1979 (annex. L), issued under s. 269D(1) of the I.T. Act, 1961, for quashing the directions issued y the Commissioner of Income Tax to that effect.

(2.) The petitioner along with respondents Nos. 3, 4 and 5 purchased property bearing No. XIV-219, Gali Post Office, Sadar Bazar, Delhi, by a sale deed dated November 20, 19978, for a consideration of Rs. 1,70,000. The sale deed was registered on November 28, 1978. The property was purchased from a charitable trust known as Sethani Indermani Jatia Charitable Trust, having its office at Seth Ganga Sagar-ki-kothi, Junction Road, Khurja, Uttar Pradesh. Before selling the property, the trustees of the said trust filed an application under s. 7 of the Charitable and Religious Trusts Act, 1920, in the court of the district judge. The district judge, vide his order dated February 24, 1978, allowed the application and observed :

(3.) According to the averments in the petition, the aforesaid letter was received by the vendees at 3.30 p.m. on the date fixed for hearing and as such they sent a telegram asking for adjournment of the case to May 9, 1979. On May 9, 1979, the petitioner along with his advocate appeared before the competent authority and pointed out to him that all the information asked for had already been supplied on April 2, 1979. However, as the valuation report of the said property had not been supplied earlier, the same was produced before him on May 9, 1979. A complete written reply along with the valuation report was filed with the competent authority on May 9, 1979. On May 10, 1979, the competent authority, by an order in writing on the order sheet, stated that he did not consider it necessary to initiate the proceedings. The exact order is : "No action is necessary."