K L SUNEJA Vs. UNION OF INDIA

JUDGEMENT

(1.) By this writ petition the petitioners pray for quashing of an order dated 20/21 November 1990 passed by the appropriate authority under Chapter XX-C of the Income-tax Act, 1961 (for short `the Act') and a direction to the said authority to grant `No Objection Certificate' under section 269-UL (3) of the Act.2. Briefly stated, the background facts giving rise to the petition are as follows:

(2.) On 20 September 1990, the petitioners entered into an Agreement with respondent No.3 for purchase of a property, bearing No.H-15, Maharani Bagh, New Delhi, for a total consideration of Rs.66 lakhs. As required under section 269-UC of the Act, on 28 September 1990, the petitioners and the said respondent filed a statement in Form 37-I, prescribed under the Income-tax Rules, with the appropriate authority for issuance of `No Objection Certificate', in order to enable respondent No.3 to execute the sale deed in favour of the petitioners. The appropriate authority after obtaining some further information/documents from the petitioners and respondent No.3, passed the impugned order, ordering the filing of the said statement on the ground that it had been brought to its notice that the High Court of Delhi had restrained respondent No.3 from alienating, encumbering or parting with possession of the property and since the said order had not been vacated when the Agreement to Sell was entered into, respondent No.3 was not competent to sell the property; sign and verify the statement in Form 37-I. Consequently, the statement filed being invalid, no action could be taken thereupon.

(3.) Aggrieved by the said communication, the present writ petition was filed.