Timely tender under Chapter XX-C determines whether a compulsory property purchase order survives or abrogates

Chapter XX-C compulsory purchase of immovable property was held to abrogate where the Department failed to prove timely tender or deposit of the consideration within the period prescribed by sections 269UG and 269UH. The communication relied upon only authorised the Chief Commissioner to tender the amount and did not establish actual tender to the concerned parties on or before the statutory deadline. In the absence of proof of a valid tender or deposit within time, the statutory consequence under section 269UH followed and the purchase order stood abrogated.

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Issues: Whether the purchase order made under Chapter XX-C of the Income-tax Act, 1961 stood abrogated for failure to tender or deposit the consideration within the period prescribed by sections 269UG and 269UH.

Analysis: The proceedings were initiated under Chapter XX-C for compulsory purchase of immovable property on the basis of the apparent consideration. The High Court found that the amount was tendered after the stipulated period and that there was no material to show that the consideration had been offered to the parties concerned on or before the prescribed date. The communication relied upon by the Department only authorised the Chief Commissioner to tender the amount and did not establish actual tender within time. In the absence of proof of timely tender or valid deposit within the statutory period, the consequence under section 269UH followed.

Conclusion: The purchase order stood abrogated, and the challenge to the High Court's view failed.

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