Chapter XXA acquisition proceedings were left for reconsideration amid subsequent transfers, repeal, and CBDT circular guidance.

Acquisition proceedings under Chapter XXA were left for reconsideration because the property had been transferred to subsequent bona fide transferees, the original respondents no longer appeared to retain a continuing interest, and a later transferee had already secured a non-acquisition declaration in separate proceedings. The order also notes the practical difficulty of continuing such proceedings without any express statutory mechanism for notifying later purchasers through registration of notices or orders. In view of the repeal of Chapter XXA, the substitution of Chapter XXC, and a CBDT circular directing that pending proceedings involving apparent consideration below Rs. 5 lakhs be dropped, the Department was given an opportunity to review the matter before further steps were taken.

---

---

Issues: Whether the appeals arising from an acquisition order under Chapter XXA should be finally decided in view of subsequent transfers of the property, the absence of continuing interest of the original respondents, the later declaration under section 269F(7), and the administrative policy reflected in the CBDT circular regarding pending acquisition proceedings involving low apparent consideration.

Analysis: The order records that the property had passed through several bona fide subsequent transferees and that the later transferee had already obtained a declaration that the property would not be acquired in separate proceedings. It also notes the practical hardship in continuing acquisition proceedings when subsequent transferees may be affected without adequate notice and where the statutory scheme did not expressly provide for registration of notices or orders to alert later purchasers. In light of the repeal of Chapter XXA, the substituted Chapter XXC, and the CBDT circular directing that pending proceedings with apparent consideration below Rs. 5 lakhs be dropped, the Court considered it appropriate to give the Department an opportunity to reconsider the matter before proceeding further.

Outcome: The appeals were not decided on merits at that stage; the matter was adjourned, Sushila Madan was impleaded as a respondent, and notice was directed before the case was listed again for further orders.

---