MADANKUMAR BABULAL SANGHVI Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition seeks to challenge the order dated January 27, 1994, passed by the members of the Appropriate Authority under Section 269UD(1) of the Income Tax Act, 1961 .

(2.) The petition was admitted on June 7, 1997, and the parties were directed to maintain status quo in the meanwhile. Subsequently, a reply has been filed by Mr. V.V. Nagarkar, Income Tax Officer, in the office of the appropriate authority on October 6, 1997. The petitioners have filed rejoinder.

(3.) The petitioners Nos. 1 to 3 are owners of a plot of land situated at Chinchwad, Pune, bearing survey No. 128, Hissa No. 2, admeasuring 1,67,677 square feet. The first three petitioners entered into an agreement of development with petitioner No. 4 on September 22, 1993, for development of the property to the extent of 54,000 square feet thereof. The price agreed for the development of this part of 54,000 square feet was Rs. 54,54,000. Thus, the accepted rate was Rs. 101 (rupees one hundred one only) per square feet. As per the law prevalent at that time, the petitioners submitted the requisite Form No. 37-I to the tax authorities.