BANI ROY CHOWDHURY Vs. COMPETENT AUTHORITY INSPECTING ASSISTANT COMMISSIONER OF INCOME TAX ACQUISITION RANGE II
LAWS(CAL)-1976-6-3
HIGH COURT OF CALCUTTA
Decided on June 18,1976

BANI ROY CHOWDHURY Appellant
VERSUS
COMPETENT AUTHORITY, INSPECTING ASSISTANT COMMISSIONER OF INCOME-TAX, ACQUISITION RANGE II Respondents





Cited Judgements :-

COMMISSIONER OF INCOME TAX VS. ANUP KUMAR KAPOOR [LAWS(CAL)-1978-7-40] [REFERRED TO]
JAI KUMAR KANKARIA VS. COMPETENT AUTHORITY [LAWS(CAL)-1979-6-22] [REFERRED TO]
RAI BAHADUR G V SWAIKA ESTATE P LTD VS. M N TEWARI [LAWS(CAL)-1979-8-6] [REFERRED TO]
LALITA JABBAR VS. COMPETENT AUTHORITY [LAWS(CAL)-1980-5-10] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. MADHO PROPERTIES LTD [LAWS(CAL)-1980-9-23] [REFERRED TO]
SUTLEJ CHIT FUND AND FINANCIERS PVT LTD VS. COMMISSIONER OF INCOME-TAX [LAWS(P&H)-1985-12-26] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. UNION CARBIDE INDIA LTD [LAWS(CAL)-1992-1-5] [REFERRED TO]
SUBHKARAN CHOWDHURY AND OTHERS VS. INSPECTING ASSISTANT COMMISSIONER OF INCOME-TAX ACQUISITION RANGE I AND OTHERS [LAWS(CAL)-1979-2-54] [REFERRED]


JUDGEMENT

Ramendra Mohan Datta, J. - (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 : JUDGEMENT_111_ITR112_1978Html1.htm
(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-
(a) facilitating the reduction or evasion of the liability of the transferor to pay tax under the Income-tax Act, 1961 (43 of 1961), in respect of any income arising from the transfer; and/or (b) facilitating the concealment of any income or any moneys or other assets which have not been or which ought to be disclosed by the transferee for the purposes of the Indian Income-tax Act, 1922 (11 of 1922), or the Income-tax Act, 1961 (43 of 1961), or the Wealth-tax Act, 1957 (27 of 1957);
And whereas the reasons for initiating proceedings for the acquisition of the aforesaid property in terms of Chapter XXA of the Income-tax Act, 1961 (43 of 1961), have been recorded by me; Now, therefore, in pursuance of Section 269C, I hereby initiate proceedings for the acquisition of the aforesaid property by the issue of this notice under Sub-section (1) of Section 269D of the Income-tax Act, 1961 (43 of 1961), to the following persons, namely-
(i) M/s. Life Insurance Corporation of India, (ii) M/s. Hindusthan Building Society Ltd. (Confirming party) (Transferor) (2) Shrimati feani Roy Chowdhury (Transferee) (3) Shri/Shrimati/Kumari(Person in occupation of the property) (4) Shri/Shrimati/Kumari(Person whom the undersigned knows to be interested in the property). (5) Shri/Shrimati/Kumari (6) Shri/Shrimati/Kumari Objections, if any, to the acquisition of the said property may be made in writing to the undersigned-

(a) by any of the aforesaid persons within a period of 45 days from the date of publication of this notice in the Official Gazette or a period of 30 days from the service of notice on the respective persons, whichever period expires later;

(b) by any other person interested in the said immovable property within 45 days from the date of the publication of this notice in the Official Gazette. It is hereby notified that a date and place for hearing the objections, if any, made in response to this notice against the acquisition of the immovable property will be fixed, and notice thereof shall be given to every person who has made such objection, and the 'transferee of the property.

It is hereby further notified that every person to whom notice is given under the preceding paragraph shall have a right to be heard at the hearing of the objections. Explanation : The terms and expressions used herein as are denned in Chapter XXA of the Income-tax Act, 1961 (43 of 1961), shall have the same meaning as given in that Chapter. The Schedule 7 cottahs of land being premises Nos. 29/NA (EP) and 29/NA (WP) Block " B ", New Alipur. Sd/- M. N. Tiwary Competent Authority (Inspecting Assistant Commissioner of Income-tax, Acquisition Range-II) P-13, Chowringhee Square, Calcutta-1. Seal of the Inspecting Assistant Commissioner of Income-tax, Acquisition Range-II. Date: 18-6-73.

(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.
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