ANAND PRAKASH Vs. APPROPRIATE AUTHORITY INCOME TAX DEPT

JUDGEMENT

(1.) In this petition for a writ of certiorari, the petitioner assails the validity of two separate but similar orders both dated 29th November, 1994 passed by the Appropriate Authority under Section 269UD of the Income-tax Act, 1961 for compulsory purchase of property owned by late Dr. Anand Prakash, comprising two commercial flats bearing No. 512 and 512-A, Hemkunt Tower, New Delhi. The petition also makes a claim for payment of damages for the alleged illegal, arbitrary and mala fide withholding of permission prayed for by the petitioner for the transfer of the said property.

(2.) The facts giving rise to the filing of the petition may be summarised as under :-

(3.) Late Dr. Anand Prakash was the owner of Flat Nos. 512 and 512-A, Hemkunt Tower, New Delhi. The said flats were initially leased out to a Government of India undertaking but after the tenant vacated the premises, Dr. Prakash decided to sell the same. The petitioner's case is that since he was insisting on payment of the entire consideration for the flats by cheque/bank draft, he found very few takers for his property. He was, therefore, advised by the property dealers to fall in line with the market practice of receiving the sale consideration in the ratio of 60:40 in which 60% of the amount would be paid in white while the rest would be paid under the table in the form of black money. This method, the petitioner was told, would obviate the need for obtaining permission from the Appropriate Authority under Section 269UC of the Income-tax Act, 1961 which would otherwise be necessary if the sale consideration of the flats was more than 10 lakhs. The petition goes on to state that Dr. Prakash refused to fall in line with what was suggested to him as a device for avoiding the straight and the honest method of transferring his property and insisted that he would comply with the provisions of law and accept the consideration for the flats only by cheque or bank draft.