Sale proclamation for immovable property requires prior hearing before auction terms are finalised; same-day notice and proclamation were invalid.

A sale proclamation under Rule 53 of the Second Schedule to the Income-tax Act affecting immovable property must be preceded by compliance with the prescribed procedure and a opportunity of hearing on the terms and conditions of the auction. Here, the notice for settling the proclamation did not fix any date for drawing up the sale proclamation, and both the notice and proclamation were issued on the same day, showing that no meaningful opportunity was given before the auction terms were finalised. The sale proclamation, insofar as it related to the petitioner's property, was therefore unsustainable and was set aside.

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Issues: Whether the sale proclamation issued under Rule 53 of the Second Schedule to the Income-tax Act, 1961, could be sustained when no opportunity of hearing was given for settling the terms and conditions of the auction in respect of the petitioner's property.

Analysis: The notice issued for settling the sale proclamation did not fix any date for drawing up the proclamation of sale and settling its terms. The proclamation and the notice were both issued on the same day, which showed that no real opportunity was afforded to the petitioner before finalising the auction terms. A sale proclamation affecting immovable property must be preceded by compliance with the prescribed procedure and observance of fair hearing requirements.

Conclusion: The sale proclamation, insofar as it related to the petitioner's property, was unsustainable and was set aside.

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