Krishnaswamy S. Pd. v. Union of India
INCOME TAX ACT, 1961
Compulsory purchase of immovable property by Central Government - Order under section 269UD -
Assessee entered into an agreement for sale of property. However, appropriate authority passed an order under section 269UD for pre-emptive purchase of said property by Central Government. Assessee filed a writ petition challenging constitutional validity of Chapter XXC with consequential prayer to quash order of pre-emptive purchase. In consequent to High Courts interim order, property was sold in a public auction and possession of same was given to purchaser. During pendency of said petition, it was held that before an order of compulsory purchase, parties must be given a reasonable opportunity of hearing and clarified that said directions were not applicable in cases where public auctions had already been held. Held: In writ petitions, it was noticed that assessee was not provided with an opportunity before arriving at conclusions, therefore, it was held that assessees were not entitled to any relief. Since, in public aution property had already been sold, thus, there was no challenge by owner of property.
Income-tax Act, 1961, Section 269UD
Decision: In favour of assessee
Case Law Analysis:C.B. Gautam v. Union of India [1992] 65 Taxman 440 [Para 5], South Eastern Coalfields Ltd. v. State of MP [2003] 8 SCC 648 [Para 14], Freeman v. Tranah 12 CB 406 [Para 16], UP SRTC v. Imtiaz Hussain [2006] 1 SCC 380 [Para 17], Shaikh Salim Haji Abdul Khagumsab v. Kumar [2006] 1 SCC 46 [Para 17], Mohammad Gazi v. State of MP [2000] 4 SCC 342 [Para 17], Gursharan Singh v. New Delhi Municipal Committee [1996] 2 SCC 459 [Para 17] and Union of India v. Shatabdi Trading & Investment (P.) Ltd. [2001] 6 SCC 748 [Para 19].