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of <h1>Court rules for petitioner, criticizes Authority for flawed decision-making on no-objection certificate</h1> The court ruled in favor of the petitioner, criticizing the Authority for its flawed decision-making process regarding the grant of a no-objection ... Purchase Of Immovable Property Issues:1. Grant of no-objection certificate under s. 269UL of the IT Act, 1961.2. Authority's failure to exercise jurisdiction in granting the certificate.3. Legal validity of the agreement due to alleged breach of Chapter XX-C of the Act.4. Interpretation of the powers of the Appropriate Authority under the legislation.5. Objective of Chapter XX-C in relation to property acquisition and tax evasion prevention.Analysis:The petitioner sought a no-objection certificate under s. 269UL of the IT Act for a property transaction. The Appropriate Authority, after a delay, raised concerns about omissions in the application form and alleged breaches by the vendor. The Authority neither granted the certificate nor initiated compulsory purchase proceedings within the stipulated time frame, leading to a legal challenge by the petitioner. The court noted that the Authority's actions were inconsistent with statutory provisions, emphasizing the need for a decision on either granting the certificate or compulsory purchase proceedings.The petitioner's counsel argued that the Authority's communication exceeded its jurisdiction by delving into the legality of the agreement and the vendor's past actions. Reference was made to a Supreme Court ruling emphasizing the Authority's binary options of granting a no-objection certificate or proceeding with compulsory purchase. The court highlighted that the legislation did not provide for a third alternative of returning the form due to alleged defects, especially regarding the vendor's title issues.The court clarified that the objective of Chapter XX-C was to prevent tax evasion rather than acquiring properties free of title defects. It emphasized that the Authority must decide on compulsory purchase based on the situation, without the power to rectify title defects itself. The judgment underscored that the Authority's duty was to prevent tax evasion, not to ensure flawless title transfers.Ultimately, the court ruled in favor of the petitioner, criticizing the Authority for its flawed decision-making process. It directed the Authority to grant the requested no-objection certificate within a specified timeline and awarded costs to the petitioner. The judgment highlighted the importance of adhering to statutory provisions and ensuring proper exercise of jurisdiction by the Appropriate Authority in property transactions under the IT Act.
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