ASHWIN BHAGWANDAS CHOKSEY Vs. APPROPRIATE AUTHORITIES

JUDGEMENT

(1.) This petition is filed under Art. 226 of the Constitution of India by Petitioners, who are auction purchasers of a property acquired by the Appropriate Authority under Chapter XXC of the Income-Tax Act 1961. The petition challenges a decision of the Appropriate Authority calling upon the Petitioners to pay 'unearned incremental charges' demanded by the original owner of the property, namely, Collector of Mumbai in respect of the property.

(2.) The short facts of the case may be stated as follows :

(3.) At the outset it is important to note that the Petitioners do not challenge the demand of unearned incremental charges raised by the Collector of Mumbai per se. What they challenge is the fastening of the liability to pay such charges on the Petitioners as auction purchasers. It is their case that these charges ought to be paid by the vendor, i.e. the Appropriate Authority.