LABONI DEVELOPERS Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) This petition under Article 226 of the Constitution challenges the order passed by the Appropriate Authority under Section 269-UD-Chapter XX-C of the Income Tax Act, 1961 (hereinafter referred to as the 'Act' for brevity) and prays for an order directing the Appropriate Authority to issue a certificate in terms of Section 269-UL(1) of the Act.

(2.) On 5th April 1995, the petitioner and respondent No. 3 entered into an agreement for purchase of the property in question for a consideration of Rs. 45,000,00/- (Rupees Forty Five Lack only); the total area of land is 2605.32 sq. mts. On the said land, there were three structures being a (i) Bungalow; (ii) servant quarters; and (iii) a Separate structure for residence of gardener and servants. On 17th April 1995, the petitioner (intending purchaser) and respondent No. 3 (intending seller) filed Form No. 37-1 in the office of the Appropriate Authority. On 11th July 1995, show-cause notice was issued by the Appropriate Authority under Section 269-UD(1A) of the Act to the petitioner as well as respondent No. 3. After the petitioner submitted its reply dt. 20th July 1995, the Appropriate Authority passed the order dt. 31st July 1995 under Section 269-UD(l) of the Act for purchasing the property for the Central Government. On 31st July 1995 itself the Appropriate Authority also passed another order requiring respondent No. 3 to hand over the possession of the property in question. The aforesaid orders dt. 31st July 1995 have been challenged in this petition by the- petitioner intending purchaser of the said property.

(3.) The learned Counsel for the petitioner contended that