JETHAMAL MOHANLAL KHIVANSARA Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner is seeking direction against the respondent to make payment of apparent consideration to which he is entitled, in accordance with order dated 30th May, 1995 passed under section 269-UD (1) or the Income Tax Act, 1961 ("the Act" for short ). FACTUAL MATRIX the factual matrix lies in narrow compass.

(2.) THE petitioner was the owner of the property bearing Survey No. 411 /1, plot No. I/a at Mouje Bhosari, Taluka Haveli, District Pune. The petitioner had executed an agreement of sale on 13th February, 1995 in favour of his vendees Shri Nandkumar Khivansara and Udaykumar Jethamal Khivansara to sale the said immovable property for total consideration of Rs. 38,88,000/ -.

(3.) IN accordance with the provisions of Chapter XX-C of the Act, the parties to the agreement, namely; petitioner and his vendees had jointly filed declaration in Form 37{i) with the appropriate authority, the respondent No. 2 as required under the provisions of the Act. After inspection of the property and careful consideration of comparable sale instances in the vicinity of the said property, the appropriate authority; prima facie; came to the conclusion that the property was grossly undervalued by more than 15% of the market value. In the circumstances, the appropriate authority issued show cause notice, which was replied by parties to the agreement. The appropriate authority after hearing the parties to the show cause notice was pleased to pass an order under section 269-UD (l) of the Act, directing the Central Government to exercise right of purchase under the provisions of Chapter XX-C of the Act. Accordingly, order came to be passed determining the apparent consideration, payable by the Central Government to the petitioner in the sum of rs. 36,42,732/- including Rs. 3,90,000/- paid by the transferee of the agreement. The Central Government inspite of the order dated 30th May, 1995, did not pay the apparent consideration to the petitioner inspite repeated demand in this behalf. The petitioner, therefore, having left no alternative approached this Court under Article 226 of the Constitution of India to seek directions against the respondents to make payment of the apparent consideration in accordance with the order dated 30th May, 1995 passed under section 269ud (1) of the Act.