TATA CONSULTANCY SERVICE Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) Heard the learned counsel for the petitioner and the learned counsel appearing on behalf of the respondents. It is stated that the petitioner-company is one of the highly reputed companies in the business of information technology and software consulting. The petitioner has executed several turnkey projects for some of the top companies in India and in some foreign countries. As such, the petitioner had procured large tracts of land for setting up a world-class software centre, at Sholinganallur, Chennai.

(2.) It has been further stated that M/s. Gum (India) Limited, a public limited company had one of its manufacturing facilities at Sholinganallur. Two plots of land, in survey Nos. 408/9, 408/10, situated in Sholinganallur Village, were lying adjacent to the software centre, established by the petitioner-company. Therefore, the petitioner-company was interested in buying the said plots of land, from M/s. Gum (India) Limited. At the time of the negotiations M/s. Gum (India) Limited had assured the petitioner-company that the property in survey No. 408/10, in Sholinganallur Village, measuring an extent of 1.038 acres was free from encumbrances. Two other properties of M/s. Gum (India) Limited, measuring 1.887 acres, in survey Nos. 408/9 and 408/10, had been notified for acquisition by the Tamil Nadu Housing Board. The acquisition proceedings had been challenged before this court. However, the property measuring 1.038 acres, in survey No. 408/10, was not subject to any acquisition proceedings. No cases were pending in respect of the said land.

(3.) In such circumstances, the petitioner-company had entered into an agreement for sale, on January 24, 2001, with M/s. Gum (India) Limited, for the purchase of 1.038 acres, in Survey No. 408/10, Sholinganallur Village, for a sum of Rs. 28,00,000. An advance of Rs. 20,00,000 had been paid on the same day. Later, a sale deed had been registered, on March 30, 2001, by which the property in question had been purchased by the petitioner-company, from M/s. Gum (India) Limited.