KISHOR TULSIDAS CHOKSI Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) By this Petition, the Petitioners are challenging the order dated 18th February,1993, passed by the Commissioner of Income Tax under Section 269UD(1) of the Income Tax,1961 (hereinafter referred to as "the Act"). The Petitioners have also prayed for a direction to the Respondent No.1 for grant of No Objection Certificate' under Sec. 269UL (3) of the Income Tax Act. The Petitioners have further prayed that the Central Government be directed to make good the loss caused to the Petitioners and to pay the amount with interest. The Petitioners have also prayed for an injunction restraining the Respondents from proceeding further by way of taking possession of the property, in pursuance of the impugned order.

(2.) The brief facts of the case are that the Petitioner No.4 is wife of Petitioner No.3, Petitioner No.1 is true brother of Petitioner No.4 and Petitioner No.2 is a minor son of brother of Petitioner No.4. The Petitioner Nos.1 and 2 (hereinafter referred to as the Purchasers) had executed an agreement with Petitioner Nos.3 and 4 (hereinafter referred to as the Vendors) for a consideration of Rs.14,00,000.00 , out of which Rs.5,15,000.00 was paid on 27th September,1986. As the transaction was of prior to 1st October,1986, it had required "No Objection Certificate" from Competent Authority under Chapter XX-A of the Income Tax Act,1961, therefore, on 29th September,1986 the Petitioners had filed a declaration in Form No.37EE on 29th September,1986. As an abundant precaution, the Petitioners had also filed a declaration in Form No.37-I. On 12th November,1986, the Petitioners had received a letter from Respondent No.1 calling for details of the said flat, and accordingly, the Petitioners had furnished the same. Thereafter, on 19th December,1986, the order of purchase under Section 269UD(1) of the Income Tax Act,1961 came to be passed.

(3.) Aggrieved thereby, the Petitioners had filed a Writ Petition No.3548 of 1986, wherein this Court had set aside the order passed by the Respondents under section 269UD(1) of the Income Tax Act. On 30th December,1992, Respondent No.1 had issued a show cause notice along with reasons recorded for passing an order dated 19th December,1986.