APPROPRIATE AUTHORITY Vs. CHANDRAVADAN DESAI

JUDGEMENT

(1.) This appeal is directed against the judgment and order dated January 13, 1994, passed by a single judge of this court in Matter No. 2552 of 1986 (Chandravadan Desai v. Appropriate Authority [1995] 213 ITR 744).

(2.) The petitioners entered into an agreement dated June 24, 1985, with Ghanshyam Das Thirani, Lansdowne Properties Limited (respondent No. 4) and Onyx Estates Limited to the effect that the petitioners would pay to Thirani a sum of Rs. 13.03 lakhs, to Onyx Rs. 99,150 and to Lansdowne, a sum of Rs. 33,000 for transferring office space Nos. 3, 4, 7 and 8 measuring 4,428 square ft. on the fourth floor along with car parking space in favour of the petitioners in terms of the deed of agreement which is annexure B to the writ petition. The flats were under construction. The petitioners filed Form No. 37EE in terms of requirement under Section 269AB(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), read with Rule 48DD and the Competent Authority duly registered the said agreement under registration No. 30EE/Acq.R-III/231, dated July 22, 1985. On May 14, 1986, the petitioners received a notice dated March 14, 1986, under Section 269D(1) from the competent authority whereby proceeding for acquisition of the said premises under Chapter XX-A of the Act was sought to be initiated. The Income-tax Act was amended by introducing Chapter XX-C with effect from October 1, 1986, with a provision requiring the parties to the transaction to submit the statement in a statutory Form No. 37-I in accordance with Section 269UC(2) read with Rule 48L of the Act within October 15, 1986, along with a penal provision in case of non-compliance therewith. Although Chapter XX-C does not apply to the instant case, the petitioners by way of abundant caution submitted the statement in Form No. 37-I of the said Rules in due time. On December 18, 1986, the petitioners received a copy of the order dated December 12, 1986, under Section 269UD(1) of the Act whereby respondent No. 1 directed that the said premises under the agreement would be purchased by the Central Government for an amount of Rs. 14,34,040. Challenging this order of acquisition the petitioners filed a writ application under Article 226 of the Constitution of India before a learned judge of this court who by an order dated January 13, 1994 (see [1995] 213 ITR 744), quashed the impugned order of respondent No. 1, dated December 12, 1986, giving liberty to the respondents to proceed upon the Form No. 37EE filed by the petitioners earlier on a finding that Chapter XX-C has no application to the present case.

(3.) Aggrieved by the aforesaid order, the Revenue/Department has come up with this appeal.