ANNAPOORNA AGENCIES P LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition the petitioner has, inter alia, challenged Order dated 15.12.1986 passed by the Appropriate Authority under Sub-Section (1) of Section 269 UD of Income-Tax Act (hereinafter referred to as 'the Act for short). Although the petitioner has also challenged vires of some Income-tax Rules as well as provisions of Income-tax Act, that challenge was not pressed before us and the challenge was confined to the validity of the aforesaid order only.

(2.) One M/s.Ramesh Apartments (Delhi) Private Ltd. vide Agreement dated 7.3.1986 agreed to sell the petitioner residential apartment bearing Private No.4 on the first floor in Block 'A' of 9, Prithvi Raj Road, New Delhi-110 001. Total consideration fixed was Rs.11,36,000/- which payment was made by the petitioner to the aforesaid seller on the date of execution of the Agreement. Possession was also handed over on the same day and the petitioner become entitled to use and occupy the said apartment without any restriction as provided under Clause 14 of the Agreement. As per Clause 19 of the Agreement the petitioner also became liable to pay the proportionate amount of Municipal taxes, ground rent, water and electricity charges, maintenance services and other outgoings and expenses in respect of the said apartment w.e.f. the date of the execution of the Agreement.

(3.) As stated above, although number of prayers are made in the writ petition the only argument advanced by learned counsel for the petitioner was that provisions of Chapter XXC of the Act apply only to agreement for transfer made on or after 1.10.1986 and these provisions would not apply to the case of the petitioner since agreement in question was dated 7.3.1986. In support of this contention, learned counsel for the petitioner relied upon judgment of this Court in the case of Bhatia Apartments (Pvt) Ltd Vs. Union of India and others, reported in 252 ITR 244.