VIDARBHA ENGINEERING INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD Shri Manohar, learned counsel for the petitioners, and Shri Jaiswal, learned counsel for respondent No. 2.

(2.) THE petition is directed against the order dated July 29,1994, passed under section 269ud (1) of the Income-tax Act, 1961, as well as order dated April 11, 1997, passed by the appropriate authority whereby application filed by the petitioners for withdrawal of Form No. 37-1 was rejected.

(3.) SHRI Manohar, learned counsel for the petitioners, states that petitioner No. 1 is an exclusive owner of plots Nos. 34, 35 and 36 situated at Industrial Area Scheme, N. I. T. , Dahipura, and Untkhana, Rambagh Road, Nagpur. Petitioner No. 1 entered into a memorandum of understanding (MOU) with petitioner No. 3 to develop plots Nos. 34, 35 and 36 subject to conversion of use of plot from industrial to commercial. The memorandum of understanding records that the property will be developed by petitioner No. 3 fully at his expenditure and cost. Petitioner No. 1 would be entitled to 22 per cent, of the said developed commercial property and petitioner No. 3 shall get 78 per cent, of the developed property. It was also agreed that petitioner No. 3 shall give interest free deposit of Rs. 10,00,000 to petitioner No. 1.