AMARCHAND J AGARWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) AN interesting question as to the time when the Competent Authority can exercise powers under s. 269C of the IT Act, 1961 (hereinafter referred to as "the Act"), falls for consideration in this petition filed under Art. 226 of the Constitution of India.

(2.) THE facts are not in dispute and are required to be stated briefly to appreciate the contention of the petitioner. The respondent No. 4 and his wife were owners of a property situate at Santa Cruz and bearing survey No. 46, plot No. 2 and City Survey No. H/106 of Bandra Taluka Andheri. The property admeasures approximately 1,340 square yards. On October 27, 1970, respondent No. 4 and his wife entered into an agreement of sale in favour of a partnership firm belonging to respondents Nos. 5, 6 and 7. The petitioner is one of the partners of the firm along with respondents Nos. 5 to 7. The original owners executed conveyance dated November 7, 1972, in favour of the firm for a consideration of Rs. 1,41,000. At the time of the agreement of sale the purchasers had paid an amount of Rs. 2,000 as part consideration to the transferor. The document was lodged for registration on November 15, 1972. A certificate under S. 230A of the Act was forwarded to the registering authority on November 29, 1972, and ultimately the document came to be registered on September 21, 1977.

(3.) PROVIDED that before initiating such proceedings, the Competent Authority shall record his reasons for doing so :