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TMI Blog2021 (10) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Charity Commissioner only has persuasive effect but is not binding. In the impugned order the appropriate authority says that even if the bungalow had remained unoccupied and required heavy repairs, in its opinion, this could affect the price only marginally, say to the extent of ₹ 100/- per sq.ft. which amount would be sufficient to renovate and beautify the row house. But there is nothing to show how they arrived at the figure of ₹ 100/- per sq.ft. No opportunity was given to petitioner to respond to said renovation cost. It is settled law that issuance of a show-cause notice is not an empty formality. The appropriate authority should give to the person likely to be affected by the order proposed to be made a notice of the action intended to be taken, inform him about the materials on the basis of which the appropriate authority proposes to take action for preemptive purchase and give a fair and reasonable opportunity to such person to represent his case and to correct or controvert the material sought to be relied upon against him Charity Commissioner, under the Bombay Public Trusts Act, is required to give his sanction bearing in mind interest, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property after the expiration of a period of two months from the end of the month in which the statement referred to in section 269UC in respect of such property is received by the appropriate authority : Provided further that where the statement referred to in section 269UC in respect of any immovable property is received by the appropriate authority on or after the 1st day of June, 1993, the provisions of the first proviso shall have effect as if for the words two months , the words three months had been substituted : Provided also that the period of limitation referred to in the second proviso shall be reckoned, where any defect as referred to in sub-section (4) of section 269UC has been intimated, with reference to the date of receipt of the rectified statement by the appropriate authority : Provided also that in a case where the statement referred to in section 269UC in respect of the immovable property concerned is given to an appropriate authority, other than the appropriate authority having jurisdiction in accordance with the provisions of section 269UB to make the order referred to in this sub-section in relation to the immovable property concerned, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - and the sale was closed. The acceptance of offer in response to advertisement was approved by a resolution passed by the Board of Trustees of the transferor. Since the transferor was a trust, the agreement which was reached on 26th July, 1990 was subject to permission of the Charity Commissioner to be obtained for the proposed sale, the permission from the concerned society for proposed transfer and receiving a no objection from the appropriate authority under Section 269UC under Chapter XX-C of the Act. 4. An application under Section 36 of the Bombay Public Trusts Act for sanction was fled on 6th May, 1991 and the Charity Commissioner by an order dated 24th November, 1992 accorded his sanction for the sale of the said bungalow to petitioner for ₹ 23,10,000/-. The society also granted its permission vide a letter dated 25th January, 1993. The no objection under Chapter XX-C of the Act was rejected by the appropriate authority by an order dated 28th April, 1993 which is impugned in this Petition. 5. Petitioner and transferor trust had received a show cause notice dated 13th April, 1993 from the office of the appropriate authority calling upon to show cause as to why a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormality. Its purpose is to give a reasonable opportunity to the affected persons to contend that the apparent consideration as per the agreement to sell is the market price or that there is no undervaluation because of peculiar facts. The appropriate authority should give to the person likely to be affected by the order proposed to be made a notice of the action intended to be taken, inform him about the materials on the basis of which the appropriate authority proposes to take action for preemptive purchase and give a fair and reasonable opportunity to such person to represent his case and to correct or controvert the material sought to be relied upon against him. Hence, in the show-cause notice under Section 269UD of the Act, provisional conclusions are required to be briefly specified. These provisional conclusions are required to be briefly specified so that the affected persons could correct or controvert the same effectively. If a vague show-cause notice is given without specifying anything as has been done in this case or without specifying the grounds for holding that the property is required to be purchased under Section 269UD of the Act, then it can be held that reasonab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 269(UD)(1)of the Income-tax Act. 8. While considering the contents of show-cause notice in the matter arising in connection with a disciplinary proceeding under the Punjab Civil Services (Punishment and Appeal) Rules, 1952, the Supreme Court has in the case of B.D. Gupta v. State of Haryana, (1973) 3 SCC 149 : AIR 1972 SC 2472 observed as under (at page 2474) : There is nothing, however, in the 'Show-Cause Notice' of 26th October 1966 to indicate clearly that the dissatisfaction of Government with the appellant's reply of 18 December 1956 had nothing to do with Charge 1(a). The 'Show-Cause-Notice' merely states in vague general terms that the appellant's reply to the charges and allegations was unsatisfactory. Even if we were to assume, though there is no reasonable ground for this assumption, that Government did not have in mind the contents of Charge 1(a) while serving this 'Show-Cause-Notice', there is nothing in the 'Show- Cause-Notice' to give any indication that the particular allegations regarding which the appellant had failed to furnish a satisfactory explanation were referable only to Charge 1(b). The notice is vague ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sheth and others (supra) reads as under :- 5. The Charity Commissioner, under the Bombay Public Trusts Act is required to give his sanction bearing in mind the interest, benefit and protection of the trust. He has to apply his mind, inter alia, to the price at which the property is to be sold under the agreement. The Charity Commissioner has the power, in a given case, to come to the conclusion that the price at which the trustees have agreed to sell the property is that the price at which the trustees have agreed to sell the property is not the price which would secure adequate benefit to the trust and he may reject the agreement on that ground. Even the terms of the agreement of sale which the trustees may have entered into, are liable to be examined by the Charity Commissioner at the time when he grants his sanction. Approval by the Charity Commissioner ensures the reasonableness of the agreement of sale. These factors will also have to be borne in mind by the income-tax authorities while exercising their power under section 269UD. The discretionary power under that section cannot be exercised arbitrarily. It will have to be exercised bearing in mind the purpose for whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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