Shrichand Raheja and Another Vs. S.C. Prasad, (Appropriate Authority) and Others - Court Judgment |
| Direct Taxation |
| Mumbai High Court |
| Sep-28-1994 |
| Writ Petitions Nos. 797 and 862 of 1994 |
| M.L. Pendse and;S.M. Jhunjhunwala, JJ. |
| 1995(2)BomCR145; (1994)122CTR(Bom)131; [1995]213ITR33(Bom) |
| Income Tax Act, 1961 - Sections 28, 269(UA), (UC), (UD), (UD(1)), (UD(2)), (UE)(UE(1)), (UF), (UF(1)), (UG), (UG(1)), (UH), (UJ) and (UL(3)) |
| Shrichand Raheja and Another;laila Hitchens and Another |
| S.C. Prasad, (Appropriate Authority) and Others;union of India and Others |
| Deokinandan, Adv. |
| K. M. L. Majele, Adv. |
- - order by vendee--failure to tender apparent consideration within stipulated time. ratios :(i) where by reason of failure to tender apparent consideration purchase order stood abrogated, such abrogation could be settled by transferor, still, the transferee had locus standi to challenge purchase order. the plea that the issue whether purchase order stood abrogated for failure to tender amount within stipulated period was between the transferors and the central government and the transferees could not challenge the purchase order on that ground, could not be accepted because the failure to tender the amount within stipulated period leads to consequences prescribed under the statute and consequences do not depend upon the action or concession of either the transferor or the transferee......from transferee was returned by transferor consequent to the purchase order passed under s. 269ud, agreement stood revoked still, the transferee could challenge order. held :the right of the transferees to challenge purchase order could not be denied on the ground that the transferees had received back the part consideration. the transferees were entitled to receive back the part consideration. the plea that the issue whether purchase order stood abrogated for failure to tender amount within stipulated period was between the transferors and the central government and the transferees could not challenge the purchase order on that ground, could not be accepted because the failure to tender the amount within stipulated period leads to consequences prescribed under the statute and consequences do not depend upon the action or concession of either the transferor or the transferee. in these circumstances, the preliminary objection that the transferees had no locus standi to maintain the petition in view of what transpired during the pendency of this petition could not be accepted.application :also to current assessment years. a. y. :1993-94 income tax act 1961 s.269ud
ORDER
BY VENDEE--Failure to tender apparent consideration within stipulated time.
Ratios :
(i) Where by reason of failure to tender apparent consideration purchase order stood abrogated, such abrogation could be settled by transferor, still, the transferee had locus standi to challenge purchase order. (ii) Where part of sale consideration received from transferee was returned by transferor consequent to the purchase order passed under s. 269UD, agreement stood revoked still, the transferee could challenge order.
Held :
The right of the transferees to challenge purchase order could not be denied on the ground that the transferees had received back the part consideration. The transferees were entitled to receive back the part consideration. The plea that the issue whether purchase order stood abrogated for failure to tender amount within stipulated period was between the transferors and the Central Government and the transferees could not challenge the purchase order on that ground, could not be accepted because the failure to tender the amount within stipulated period leads to consequences prescribed under the statute and consequences do not depend upon the action or concession of either the transferor or the transferee. In these circumstances, the preliminary objection that the transferees had no locus standi to maintain the petition in view of what transpired during the pendency of this petition could not be accepted.
Application :
Also to current assessment years.
A. Y. :
1993-94
Income Tax Act 1961 s.269UD