SATISH BALAN Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule. By consent returnable forthwith. At the request of the Counsel for the parties matter taken up for final hearing.

(2.) By this petition under Article 226 of the Constitution of India the petitioners take exception to the order dated 8 July 2011 passed by the Appropriate Authority constituted under Chapter XXC of the Income Tax Act, 1961 ("the Act"). By the impugned order dated 8 July 2011 a property admeasuring 555 sq. yards together with super structure standing thereon being property bearing Plot No.70/P, Suburban Scheme III, Chembur Garden, Chembur ("said property") along with the encumbrance of a tenant thereon was acquired and now vests in Central Government under Chapter XXC of the Act.

(3.) On 18 February 1995, the petitioners entered into an agreement for purchase of the said property along with a monthly tenant thereon with the owners thereof namely one Waman Vishnu Ajrekar represented in the present petition by his legal heir Smt. Gouri Anand Gokhale as respondent No.3 (referred to as the seller). The said property was purchased on as is where is basis for lumpsum consideration of Rs.1.15 crores. In terms of the agreement the petitioner paid a sum of Rs.11.50 lacs by way of earnest money and the balance of Rs.1,03,50,000/ was to be paid to the seller on completion of the sale.