MUKUND L VORA Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner is challenging an order dated 18/02/1994 passed by the Appropriate Authority, respondent No. 2 herein, under sub-s. (1) of s. 269ud of the Income-tax Act ('the Act' for short ). The Appropriate authority ordered purchase of the petitioner's property by the Central government, for apparent consideration of Rs. 3,62,25,050/ -. The petitioner has not challenged acquisition of the said property. The challenge in the petition is restricted to the impugned order to the extent of withholding a sum of Rs. 5,00,000/- on account of transfer fees allegedly payable to the co-operative Housing Society and secondly; the act of invoking concept of discounting envisaged under s. 269ua (b) of the Act and thereby reducing the amount of apparent consideration from Rs. 3,70,00,000/- to Rs. 3,62,25,050/ -. Factual matrix :

(2.) UNDISPUTED factual matrix giving rise to the present petition is that under an agreement dated 24/11/1993, the petitioner agreed to sell his property; being residential Flat No. 241, Urvashi, L. Jagmohandas road, Bombay - 400 006, along with car parking space (hereinafter referred to as 'the suit premises' for short), for a consideration of Rs. 3,70,00,000. It was, inter alia; agreed between the parties that out of the aforesaid amount of consideration Rs. 3,70,00,000/-, a sum of Rs. 35,00,000/-would be paid by the vendee to the petitioner and balance amount of rs. 3,35,00,000/- shall be paid within 48 hours after receipt of'no objection certificate' from the Income-tax Department and/or from the housing society or 15/03/1994 whichever is later. The transfer charges of the society were to be borne by the vendor and vendee in the ratio of 50:50.

(3.) IN pursuance of the aforesaid agreement petitioner and the said purchasers, furnished to the respondents the statement of transfer of immovable property as required by law under s. 269uc of the Act in Form no. 37-1 as prescribed. The petitioner and said purchasers were served with the show cause notice dated 31/01/1994, under s. 269ud of the Act, calling upon them to show cause as to why an order should not be made directing Central Government to purchase the said premises under s. 269ud of the Act.