RAKESH CHANDER RASTOGI Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) THE petitioners are aggrieved by the order dt. 31st July, 1995, passed by the Appropriate Authority, IT Department, New Delhi, under S. 269UD(1) of the INCOME TAX ACT, 1961, ordering purchase by the Central Government of the property forming the subject -matter of an agreement to sell dt. 26th April, 1995.

(2.) THE property forming the subject -matter of dispute is No. 142, Madhuban, Delhi, having 330 sq. yds. of land built -up areas of 2 floors with a mezzanine floor and basement. The property belongs to one Dr. S.K. Sama, who entered into an agreement to sell the said property in favour of the two petitioners for a consideration of Rs. 50 lakhs vide agreement dt. 26th April, 1995 (Annexure P -1). Form No. 37 -I (Annexure P -2), as required by S. 269UC of the Act signed by the vendor and vendees both were filed on 28th April, 1995. The Appropriate Authority raised certain queries and then issued a show -cause notice calling upon the parties to the agreement to show cause why an order to purchase by the Central Government be not passed. The petitioners as well as the vendor filed replies. After affording the notices an opportunity of hearing the impugned order has been passed. The Appropriate Authority has formed an opinion that keeping in view the market value of properties similarly situated, the value of the property in question works out to Rs. 62,85,042 which is more than 15 per cent of the apparent consideration of Rs. 50 lakhs which is undervalued.

(3.) ON behalf of the respondents, it was submitted that all the relevant factors were kept in view and order to purchase made by the Appropriate Authority is a very just order not liable to be interfered with by this Court in exercise of its writ jurisdiction.