MOI ENGINEERING LIMITED Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) The Court : On 17.4.89 the petitioners jointly entered into an agreement with one K. S. Binayak for sale of certain land, building, structure and machinery at a price of Rs. 1,50,000.00. The petitioners and the transferee filed a statement under section 269 UC of Chapter XXC of the Income I Tax Act 1961 (referred to as the Act) before the respondent No.1 being the Appropriate Authority for considering whether the Central Government would purchase the immovable property being the subject matter of the sale under section 269 UD (1) of the Act.

(2.) By an order dated 12.6.89 the Appropriate Authority, being the respondent No.1, held that the statement was premature inasmuch as the agreement dated 17.4.89 could not be implemented by reason of the restrictions contained in the Urban Land (Ceiling & Regulation) Act 1976 (referred to as the 1976 Act). It was stated that unless the proceedings under the 1976 Act were completed, no statement could be filed. This is the first order which has been impugned in this proceeding.

(3.) The petitioners then made an application under the 1976 Act to the Competent Authority for a no objection certificate on 16th May 1990. In that application it was stated that the proposed transfer under the agreement dated 17.4.89 was not affected by the provisions of the 1976 Act. As no reply was received from the Competent Authority under section 26(2) of the 1976 Act within the statutory period of 60 days, the petitioner wrote to the respondent No.1 on 21.8.90 to grant the necessary no objection certificate in respect of the proposed transfer under Chapter XXC of the Act. A fresh statement in Form No.37-I was enclosed with the letter.