1993 (4) TMI 43 - HC - Income Tax

Summary

Issues:
1. Challenge to pre-emptive purchase and eviction orders.
2. Capacity of the petitioner as purchaser and tenant.
3. Waiver of right to challenge pre-emptive purchase order.
4. Acceptance of refund of advance payment by the petitioner.
5. Justification for challenging pre-emptive purchase order.
6. Interference with pre-emptive purchase order.
7. Remand of the matter regarding eviction order.

Analysis:

The case involved a dispute regarding an agreement to sell a property where the petitioner and others agreed to purchase the property for Rs. 180 lakhs. The appropriate authority ordered pre-emptive purchase of the property under the Income-tax Act, 1961, for the same amount. The petitioner challenged the eviction order while accepting the refund of the advance payment from the transferor. The petitioner claimed dual capacity as a purchaser and a tenant, relying on a Supreme Court decision.

The court considered the contentions of both parties. The petitioner's letters indicated acceptance of the sale and refund terms, acknowledging the respondent as the landlord and sending rent in advance. The court found no justification for the petitioner to challenge the pre-emptive purchase order after accepting the refund and acknowledging the respondent as the landlord. Therefore, the court declined the petitioner's prayer to interfere with the pre-emptive purchase order.

Regarding the eviction order, the court remanded the matter to the appropriate authority to allow the petitioner to file objections and be heard before a decision is made. The petitioner was directed to appear before the authority on a specified date for further proceedings. The court differentiated between the challenges to the pre-emptive purchase and eviction orders, allowing the petitioner an opportunity to contest the latter while upholding the former decision.