LYTTON HOTEL PVT LTD Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) The petitioner in this writ application has challenged an order dated July 29, 1993, passed by the Appropriate Authority of the Income-tax Department, Calcutta (respondent No. 1 herein), under Section 269UD(1) of the Income-tax Act, 1961 (hereinafter referred to as "the said Act").

(2.) By the said impugned order it has been held by the respondents that there has been understatement of apparent consideration in the property in question being premises No. 14/1, Sudder Street, Calcutta, and it was a fit case to exercise pre-emptive purchase as laid down in Chapter XX-C of the said Act.

(3.) The short fact of the case is that respondent No, 5 being the present owner by and under an agreement in writing dated May 21, 1995, agreed to sell and the writ petitioner herein agreed to purchase the said property at consideration of Rs. 75.05 lakhs subject to existing tenancy and other terms and conditions as contained in the agreement. The said property is encumbered with the monthly tenancy created by respondent No. 5 in favour of the pro forma respondents Nos. 6 and 7 who were once sought to be evicted unsuccessfully. The property in question in wakf property. So the Joint Charity Commissioner, Vadodara Division, Gujarat, with whom the wakf is registered had to and indeed permitted to sell the said property by an order dated August 17, 1992, read with order dated June 4, 1993. The said order was passed at the instance of respondent No. 5 permitting to sell the same at Rs. 75.05 lakhs to the petitioner. Before the said order was passed, it had been advertized in two newspapers inviting offers. Pursuant to the said advertisement, the petitioner applied to the said Commissioner.