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of <h1>High Court Rules on Income Tax Act Acquisition Order</h1> The High Court quashed the acquisition order under Chapter XX-A of the Income-tax Act, 1961, dated December 12, 1986. It held that Chapter XX-C did not ... Purchase Of Immovable Property By Central Government, Change Of Law, Effect Issues:1. Validity of the order of acquisition under Chapter XX-A of the Income-tax Act, 19612. Applicability of Chapter XX-C to the transaction3. Interpretation of provisions under Chapter XX-A and Chapter XX-C4. Conflict of judgments from different High Courts regarding retrospective application of rules5. Procedural safeguards and remedies available to the petitioners under different chaptersAnalysis:1. The judgment involves the challenge against an order of acquisition dated December 12, 1986, under Chapter XX-A of the Income-tax Act, 1961. The petitioners had entered into an agreement for the transfer of office space, and the appropriate authority initiated proceedings for compulsory purchase under section 269D of Chapter XX-A. The High Court quashed the acquisition order, citing that Chapter XX-C did not apply to the case, and directed the respondents to proceed based on the Form No. 37EE filed by the petitioners earlier.2. The court analyzed the applicability of Chapter XX-C to the transaction in question. It noted that the petitioners filed Form No. 37-I under Chapter XX-C after its introduction, but as the transfer of property was not completed before the enactment of Chapter XX-C, the court held that the provisions of Chapter XX-A would continue to govern the transaction alongside Chapter XX-C. The judgment highlighted the necessity of a written agreement for sale before executing a sale deed under Chapter XX-C.3. The judgment delved into the interpretation of provisions under Chapter XX-A and Chapter XX-C. It emphasized that where the transfer of property had already occurred by a legal document before the introduction of Chapter XX-C, the latter would not apply. However, if the transfer had not been completed by a legal document, both Chapter XX-A and Chapter XX-C would be applicable, ensuring compliance with statutory requirements.4. The court discussed conflicting judgments from different High Courts regarding the retrospective application of rules. It cited cases from the Madras High Court, Gujarat High Court, and Delhi High Court, showcasing varying interpretations of the applicability of Chapter XX-C to agreements entered into before its enactment. The judgment aimed to reconcile these conflicting views by emphasizing the specific facts and procedural history of the case at hand.5. The judgment also addressed the procedural safeguards and remedies available to the petitioners under different chapters. It highlighted that the petitioners could not abandon the acquisition procedure under Chapter XX-A and switch to the more onerous process of pre-emptive purchase under Chapter XX-C. The court emphasized the importance of procedural fairness and upheld the decision to quash the acquisition order, ensuring that the petitioners were not deprived of their rights under Chapter XX-A.
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