MEHTA MODY AND CO Vs. APPROPROATE AUTHIRITY

JUDGEMENT

(1.) By this petition, the petitioners are challenging an order dated 25.2.1993 passed by the Appropriate Authority being the respondent No. 1 herein under section 269-UD(1) of the Income Tax Act, hereinafter referred to as "the Act".

(2.) The brief facts are that the petitioners had entered into an agreement on 11.4.1989 to purchase the flat viz. Flat No. 302, 3rd Floor, at the Anjali Co-operative Housing Society Limited, situated at French Bridge, Opera House, Mumbai, for a total consideration of Rs. 17, 85, 000/- and the petitioners had also made payment of Rs. 10 lakhs on the same day. On 28.4.1989, the balance amount was paid by the petitioners and the possession of the said flat was taken from 3rd respondent on the very same date. Thereafter the petitioners had filed a statement in Form No. 37-1 under Chapter XXC of the Act on 9.5.1989. The Appropriate Authority had called upon the petitioners to file certain particulars, and the Department's Approved Valuer had inspected the premises and thereafter the petitioners were asked to file certain particulars which were furnished by the petitioners.

(3.) It appears that again the re-inspection of the said flat was conducted by the officer of the 1st respondent on 18.7.1989. On 20.7.1989 i.e. on the very next date the petitioners' representative informed the respondents that in the very same building a fiat was sold at the rate of Rs. 2750/- per sq.ft. and even certain other comparable instances in the neighbouring building were also brought to the notice of the 1st respondent. It appears that without affording any opportunity of hearing, an order was passed by the 1st respondent on 26.7.1989 under section 269-UD(1) of the Act. The petitioners had challenged the same by filing a Writ Petition No. 223 of 1989, and this Court by an order dated 16.12.1992 had set aside the said order and directed the authority to issue an appropriate notice before passing an order under section 269-UD(1) of the Act, relying upon the Hon'ble Supreme Court's decision in C.B. Gautam Vs. Union of India, A.I.R. 1994 S.C. 771.