GOVERNMENT OF INDIA Vs. JAGADISH A SADARANGANI

JUDGEMENT

(1.) THIS appeal by the Government of India is preferred under clause 15 of the Letters Patent against the order dated April 3, 1996, passed in Writ Petition No. 17773 of 1995, allowing the writ petition and quashing the communication dated December 11, 1995, issued by the appropriate authority under Chapter XX-C of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), and further directing the appropriate authority to consider the matter as prayed for by the writ petitioner and to pass appropriate orders within a period of eight weeks from the date of receipt of the order.

(2.) THE facts of the case briefly stated are as follows : THEre is a vast urban property known as "Krishna Vilas" situate at No. 6, Police Commissioner Officer Road, Egmore, Madras. THE extent of the property is 23.5 grounds, comprising 5,239 sq. mts. of vacant land and 954 sq. mts. of built-up area. THE respondent and one N. Krishnamoorthy agreed to purchase the aforesaid property on September 7, 1995, from the executors to the estate of Sherrard Ramsay Unger (1) Miss M. E. Gwynne, daughter of Thomas Gwynne and (2) Dr. L. C. Lobo, son of late G. L. Lobo, for a sum of Rs. 5,50,00,000 and paid an advance of Rs. 1,50,00,000 pursuant to the execution of the agreement of sale. THE balance was to be paid as per the terms of the agreement later. THE vendor and the purchaser together made an application in Form No. 37-I on September 7, 1995, before the Appropriate Authority, Madras. THE appropriate authority on examining the application in Form No. 37-I found certain defects and wanted certain clarifications. THErefore, the said authority addressed a letter dated October 30, 1995, to the intending transferors and transferees. THE intending transferees submitted a reply dated November 22, 1995. We may also point out here that in the letter dated October 30, 1995, apart from raising nine points, the appropriate authority also made it clear that under sub-section (4) of section 269UC of the Act, the said rectification is sought for and the defects should be rectified within fifteen days, failing which the application in Form No. 37-I will be treated as non est. THE nine points referred to in the said letter are as follows :

(3.) WE may also point out here that one of the executants of the agreement for sale, Dr. L. C. Lobo, filed Writ Petition No. 16211 of 1991 for quashing the order dated March 25, 1991, passed by the State Government in Lr. No. 46969/TI/90-3 in which it was held that the land was in excess of the ceiling limits. The State Government passed the aforesaid order in the exercise of its power under section 34 of the Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978, setting aside the order of the competent authority in his proceedings in R. Dis. 652 of 1986, dated May 19, 1989. The relevant portion of the order passed by the State Government reads thus :