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TMI Blog2015 (4) TMI 555X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner in respect of the property No.1/431, Hira Mohallo, Nanpura, Surat (hereinafter referred to as "subject property"). 2. That the Income Tax Department, Surat put the subject property to auction. Public notice was given in the newspapers having wide circulation inviting bids/tenders and the reserve price was fixed at Rs. 91,78,000/-. As per the public advertisement / notice the auction was to be held on 25.02.2014. That as per the said public advertisement/notice the intending bidders were required to deposit for participating in the auction refundable caution deposit of Rs. 25,000/-. That as per the terms mentioned in the said public notice / advertisement, said caution deposit amount was refundable subject to the terms thereof to al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which sale came to be confirmed in favour of the highest bidder, the highest bidder was required to make the payment of the total bid amount within a period of 30 days of the auction and the balance amount was required to be paid within 90 days from the date of confirmation of the sale. As observed herein above, the sale in favour of the petitioner / highest bidder came to be confirmed on 27.02.2014. Therefore, the highest bidder petitioner was required to make the payment of 25% of the total bid amount within a period of 30 days and the balance amount within a period of 90 days from 27.02.2014. That the petitioner made the payment of 25% of the total bid amount within a period of 30 days of the auction as per the terms and conditions on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acs dated 03.07.2014. Thus, till 03.07.2014, the petitioner made the payment of Rs. 1,68,00,000/- in all (65.62% of the total bid amount). It is the case on behalf of the petitioner that at that stage the petitioner assured that remaining amount of Rs. 88 lacs shall be paid within a period of 45 days. That vide communication dated 21.08.2014 the CCIT informed the petitioner company that their request through letter dated 28.05.2014 and 02.07.2014 for extension of time to pay the remaining bid amount cannot be accepted as the same is not in consonance with the terms and conditions under the CBDT Instruction No.1908 dated 19.07.1993. That the petitioner was also informed by the aforesaid communication that failure on the part of the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er has made some payment which has been accepted by the Department. It is submitted that as the petitioner could not get the housing loan, the petitioner could not make the payment of the entire bid amount. Shri Upadhyay, learned advocate appearing on behalf of the petitioner has therefore requested to extend the time to make the payment of balance amount of bid amount. 4. Heard Shri Upadhyay, learned advocate appearing on behalf of the petitioner at length. At the outset it is required to be noted and it is not in dispute that petitioner has failed to make the payment of entire bid amount within stipulated time of 90 days from the date of confirmation of sale in favour of the petitioner. It is not in dispute that as per the public advert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner was required to make the payment of entire bid amount, which admittedly the petitioner has failed to make. Under the circumstances, as such the consequences on breach of the terms and conditions on which the sale came to be confirmed must follow. At the time of making bid the petitioner was required to make the provision for deposit of the bid amount. 4.1 Now, so far as the request on behalf of the petitioner to grant extension to the petitioner to deposit the balance bid amount is concerned, the same cannot be accepted now. It is required to be noted that as such the petitioner was required to deposit / pay the entire bid amount within a period of 90 days from 14/27.02.2014 i.e. on or before 14/27.05.2014. Therefore, time to make the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e noted that as such the CBDT Circular has not been challenged by the petitioner. Even otherwise in the public advertisement/notice inviting the bids and even in the terms and conditions on which the sale has been confirmed provide the period under which the successful bidder / petitioner was required to make the payment of bid amount and on failure to make the payment within stipulated time, the consequences shall follow. 5. In view of the above, it cannot be said that the impugned communication/decision of the CCIT forfeiting the amount on failure of the petitioner to make the payment of entire bid amount within stipulated time is illegal and/or arbitrary and/or in breach of the terms and conditions on which the sale came to be confirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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