Desiree M. Thakur & Anr. v. Appropriate Authority & Anr.

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The Tax Publishers2020 TaxPub(DT) 1597 (Bom-HC) IN THE BOMBAY HIGH COURT UJJAL BHUYAN & MILIND N. JADHAV, JJ. Desiree M. Thakur & Anr. v. Appropriate Authority & Anr. Writ Petition No.1880 of 1999 13 February, 2020 Petitioners by: Dr. Abhinav Chandrachud a/w. Manish Doshi a/w. Harsha Sawant i/ b. Vimadalal & Co. Respondents by: Ashok Kotangale a/w. A.K. Saxena and Prabhakar Ranshur ORDER *P.C.* Heard Dr. Abhinav Chandrachud, learned counsel for the petitioners and Mr. Ashok Kotangale, learned standing counsel Revenue for the respondents. 2. By filing this petition under Article 226 of the Constitution of India, petitioners seek a direction to respondent No.1 to pay to the petitioners the benefits which accrued on the amounts of Rs. 65,93,334.00 and Rs. 32,96,667.00 including interest from the date of transfer of the said amounts into its Public Deposit Account till 21-5-1999 and thereafter further benefits including interest on account of alleged wrongful withholding of the said amounts by respondent No.1. 3. A brief recital of the facts is considered necessary. 4. Petitioner No.2 is a company incorporated under the Companies Act, 1956 whereas petitioner No.1 is one of its Directors. 5. Petitioner No.1 on behalf of petitioner No.2 had entered into an agreement for sale dated 4-5-1994 with Mrs. L. (Noreen) I. Pereira and others for purchase of 2/3rd undivided shares of the land bearing Survey Nos.262/19, 265/A/1, C.T.S. Nos.1170 and 1159 situated at Sherley Mala Road, Bandra (West), Mumbai admeasuring 995 sq.mtrs. By the said agreement, Mrs. Pereira and the others had agreed to sell and petitioners had agreed to purchase the said undivided 2/3rd share of the land for a total consideration of Rs. 2,30,93,000.00, out of which an amount of Rs. 65,93,334.00 was paid by the petitioners to the vendors as earnest money and the balance amount of Rs. 1,55,00,000.00 was payable within 30 days of receipt of certificate from the appropriate authority under Section 269 UC of the Income Tax Act, 1961. The balance consideration of Rs. 10,00,000.00 was payable on execution of the deed of conveyance and other formalities by the vendors. 6. Subsequently, petitioner No.1 on behalf of petitioner No.2 entered into another agreement for sale dated 27-6-1994 with one Mr. Dennis Ferriera for sale of the remaining 1/3rd undivided share in the aforesaid land. By the said agreement, the said Mr. Dennis Ferriera had agreed to sell the land and the petitioners had agreed to purchase the land (1/3rd undivided share) for a total consideration of Rs. 1,15,46,667.00, out of which an amount of Rs. 32,96,667.00 was paid by the petitioners to the vendors as earnest money. As per the agreement, a further sum of Rs. 77,50,000.00 was payable within 30 days of receipt of no objection certificate from the appropriate authority under Section 269UC of the Income Tax Act, 1961. The balance amount of Rs. 5,00,000.00 was payable on execution of the deed of conveyance and after completion of formalities by the vendors. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2020 TaxPub(DT) 1597 (Bom-HC)

IN THE BOMBAY HIGH COURT

UJJAL BHUYAN & MILIND N. JADHAV, JJ.

Desiree M. Thakur & Anr. v. Appropriate Authority & Anr.

Writ Petition No.1880 of 1999

13 February, 2020

Petitioners by: Dr. Abhinav Chandrachud a/w. Manish Doshi a/w. Harsha Sawant i/ b. Vimadalal & Co.

Respondents by: Ashok Kotangale a/w. A.K. Saxena and Prabhakar Ranshur

ORDER

P.C.

Heard Dr. Abhinav Chandrachud, learned counsel for the petitioners and Mr. Ashok Kotangale, learned standing counsel Revenue for the respondents.

2. By filing this petition under Article 226 of the Constitution of India, petitioners seek a direction to respondent No.1 to pay to the petitioners the benefits which accrued on the amounts of Rs. 65,93,334.00 and Rs. 32,96,667.00 including interest from the date of transfer of the said amounts into its Public Deposit Account till 21-5-1999 and thereafter further benefits including interest on account of alleged wrongful withholding of the said amounts by respondent No.1.

3. A brief recital of the facts is considered necessary.

4. Petitioner No.2 is a company incorporated under the Companies Act, 1956 whereas petitioner No.1 is one of its Directors.

5. Petitioner No.1 on behalf of petitioner No.2 had entered into an agreement for sale dated 4-5-1994 with Mrs. L. (Noreen) I. Pereira and others for purchase of 2/3rd undivided shares of the land bearing Survey Nos.262/19, 265/A/1, C.T.S. Nos.1170 and 1159 situated at Sherley Mala Road, Bandra (West), Mumbai admeasuring 995 sq.mtrs. By the said agreement, Mrs. Pereira and the others had agreed to sell and petitioners had agreed to purchase the said undivided 2/3rd share of the land for a total consideration of Rs. 2,30,93,000.00, out of which an amount of Rs. 65,93,334.00 was paid by the petitioners to the vendors as earnest money and the balance amount of Rs. 1,55,00,000.00 was payable within 30 days of receipt of certificate from the appropriate authority under Section 269 UC of the Income Tax Act, 1961. The balance consideration of Rs. 10,00,000.00 was payable on execution of the deed of conveyance and other formalities by the vendors.

6. Subsequently, petitioner No.1 on behalf of petitioner No.2 entered into another agreement for sale dated 27-6-1994 with one Mr. Dennis Ferriera for sale of the remaining 1/3rd undivided share in the aforesaid land. By the said agreement, the said Mr. Dennis Ferriera had agreed to sell the land and the petitioners had agreed to purchase the land (1/3rd undivided share) for a total consideration of Rs. 1,15,46,667.00, out of which an amount of Rs. 32,96,667.00 was paid by the petitioners to the vendors as earnest money. As per the agreement, a further sum of Rs. 77,50,000.00 was payable within 30 days of receipt of no objection certificate from the appropriate authority under Section 269UC of the Income Tax Act, 1961. The balance amount of Rs. 5,00,000.00 was payable on execution of the deed of conveyance and after completion of formalities by the vendors.