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Issues: Challenge to order under section 269UC of the Income-tax Act, 1961, No objection certificate refusal, Writ of mandamus for no objection certificate issuance under section 269UL(3) of the Act
The judgment pertains to a petition challenging an order passed by the appropriate authority under section 269UC of the Income-tax Act, 1961, where the authority expressed its inability to act upon a statement in Form No. 37-I. The petitioner, a company, submitted information for a property sale to Dabur India Limited, but the authority found deficiencies in the petitioner's legal rights over the property. The authority neither opted to purchase the property nor issued a no objection certificate, hindering the sale deed registration. The petitioner sought a writ of mandamus to direct the authority to issue the certificate as per section 269UL(3) of the Act. The respondents reiterated the authority's stance in their counter affidavit. The court referred to a Supreme Court case and a Delhi High Court judgment, emphasizing that the appropriate authority has only two options: to buy the property or issue a no objection certificate. If the authority decides not to buy, it must provide the certificate. The court highlighted that the authority's duty is to determine if the pre-emptive right of purchase should be exercised based on the available documents. In this case, the authority concluded that the vendor's title was not perfect, leading to the refusal to purchase the property, thus necessitating the issuance of a no objection certificate. The court held in favor of the petitioner, directing the Income-tax Department to issue a no objection certificate within 30 days upon the petitioner's submission of a certified copy of the order. The petitioner was awarded costs for the writ petition. The judgment reaffirmed the legal obligation of the appropriate authority to issue a no objection certificate when opting not to purchase the property, as mandated by section 269UL(3) of the Act.
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