1983 (9) TMI 43

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..... egistered under the Companies Act, is Challenging the legality of the notice dated April 30, 1979, issued by the IAC, Acquisition Range II, Bombay, in exercise of the powers under s. 269A of the I.T. Act, 1961. The facts giving rise to the issuance of notice are required to be stated briefly to appreciate the grievance of the petitioners. By an agreement of sale dated March 21, 1972, the petition .....

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..... . The transaction entered into by the petitioner-company was disclosed to the income-tax authorities at the time of completion of the assessment for the period commencing from the assessment year 1973-74 onwards. The transferor had also disclosed the agreement to sell and the receipt of the consideration to the income-tax authorities, but the ITO purported to treat the vendor as the owner of the p .....

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..... rket value of the property has been referred to him by the IAC for assessment, on the date of transfer. The petitioner thereafter received the valuation report valuing the property at Rs. 5,48,000 as on June 29, 1977. The petitioners made certain inquiries with the Department and the petitioners appeared before the authorities and complained that no notice was served on the petitioners and the gaz .....

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..... orities immediately. The assessments of both the purchaser and the vendor were completed on the basis of the transfer of the property and what was left was only to get the conveyance registered. Shri Kolha submits that the income-tax authorities never informed that the value paid by the petitioners for the purchase of the property was inadequate or unreasonable. Shri Joshi, learned counsel appeari .....

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..... the time of agreement of sale. In my judgment, the action commenced by the Department cannot be sustained on the facts of the present case and the notice dated April 30, 1979, is required to be quashed. Accordingly, the rule is made absolute in terms of prayer (a) of paragraph 27 of the petition. In the circumstances of the case, there will be no order as to costs.
Case laws, Decisions, Judge .....

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