VINABEN C PARIKH Vs. U V SHAHDADPURI

JUDGEMENT

(1.) In this petition the order passed by the Appropriate Authority on 22/9/1994 under section 269 UD(1) of the Income Tax Act, 1961 ('the Act' for short) is challenged.

(2.) Relevant facts are that the petitioners are co-owners of a plot bearing Plot No.22, C.T.S. No.18, Hindu Friends Co-op. Housing Society Ltd., Natwar Nagar, 5th Road, Jogeshwari (E), Mumbai ('the plot' for short). By an agreement dated 21/5/1994 the petitioners gave to the respondent No.5 the development rights in respect of the plot in question on the terms and conditions more particularly set out therein. According to the Appropriate Authority the area of the plot in question is 860 sq. mtrs. and the F.S.I. available thereon is 9257 sq. ft. As per the agreement, the respondent No.5 was to give built up area of 4508 sq. ft. to the petitioners and for the balance F.S.I. of 4749 sq. ft. the respondent No.5 was to pay to the petitioners Rs.34,60,000/-.

(3.) On an application filed under Section 37-1 of the Act, the Appropriate Authority issued a show cause notice on 10/9/1994 for purchase of the property under section 269 UD(1) of the Act. In the said show cause notice, three sale instances were cited on the basis of which it was considered that the transaction in question was undervalued and accordingly it was proposed to purchase the plot in question under section 269 UD(1) of the Act.