BANI ROY CHOWDHURY Vs. COMPETENT AUTHORITY INSPECTING ASSISTANT COMMISSIONER OF INCOME TAX ACQUISITION RANGE II

JUDGEMENT

(1.) The subject-matter of this writ petition relates to a notice dated the 18th June, 1973, published in the Official Gazette under Section 269D(1) of the Income-tax Act, whereby proceedings were sought to be initiated by way of acquisition of the property of the petitioner being a premises in Block B in New Alipore in Calcutta. The said notice reads as follows : <FRM>JUDGEMENT_111_ITR112_1978Html1.htm</FRM>

(2.) Whereas, I, M. N. Tiwary, being the competent authority under Section 269B of the Income-tax Act, 1961 (43 of 1961), have reason to believe that the immovable property, having a fair market value exceeding Rs. 25,000 and bearing No. 29/NA (E.P. & W.P.) situated at Block ' B', New Alipur (and more fully described in the Schedule annexed hereto), has been transferred as per deed registered under the Indian Registration Act, 1908 (16 of 1908), in the office of the registering officer at Dist. Registrar, 24-Parganas, Alipur, on 12-12-72 for an apparent consideration which is less than the fair market value of the aforesaid property and I have reason to believe that the fair market value of the property as aforesaid exceeds the apparent consideration therefor by more than fifteen per cent. of such apparent consideration and that the consideration for such transfer as agreed to between the transferor(s) has not been truly stated in the said instrument of transfer with the object of-

(3.) The petitioner gave a reply to the said notice disputing and challenging the scope, purport and validity of the said notice. It was, inter alia, mentioned therein that the said notice proceeded on the basis that Hindusthan Building Society Ltd. was one of the two transferors though the said Hindusthath Building Society Ltd. was acting merely as a confirming party, as described in the said conveyance whereby the said property was conveyed to the petitioner. It was stated that the confirming party was not the owner of the land and it could not, therefore, transfer the same to the petitioner and, accordingly, the notice was void ab initio with the result that Section 269 of the Income-tax Act which was invoked by the said authority had no application. It was pointed out that the pre-requisite condition for assumption of jurisdiction by the said authorities were not satisfied in this case.