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        Case ID :

        1982 (10) TMI 74 - AT - Income Tax

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        Mandatory notice under Chapter XXA is essential; failure to serve every required transferee invalidates acquisition proceedings. Mandatory compliance with Chapter XXA initiation requirements was treated as essential, so notice under section 269D had to be served not only by Gazette ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                              Mandatory notice under Chapter XXA is essential; failure to serve every required transferee invalidates acquisition proceedings.

                              Mandatory compliance with Chapter XXA initiation requirements was treated as essential, so notice under section 269D had to be served not only by Gazette publication but also on the transferor, transferee, occupier and other interested persons. The article states that valid initiation of acquisition proceedings depends on completion of all prescribed statutory steps, and the limitation for challenging jurisdiction runs from such valid initiation, not from Gazette publication alone. Because the record showed no proof of service on one transferee, non-compliance with section 269D(2) was treated as fatal and the acquisition order was regarded as bad in law.




                              Issues: Whether the acquisition order was invalid for want of service of notice under section 269D(2) on all transferees, and whether initiation of acquisition proceedings under section 269D was complete without compliance with the statutory requirements of personal service and other prescribed steps.

                              Analysis: The statutory scheme of Chapter XXA was treated as requiring strict compliance with the steps constituting initiation of proceedings. The notice contemplated by section 269D was held to include not merely publication in the Official Gazette, but also service on the transferor, transferee, occupier and other interested persons, together with the other modes of making the notice known. The period under section 269B(3) for challenging jurisdiction was held to run from valid initiation of proceedings as a whole, not from Gazette publication alone. Since the record disclosed no proof of service of notice on one transferee, the absence of compliance with the mandatory requirement under section 269D(2) was treated as fatal.

                              Conclusion: The acquisition order was held to be bad in law for non-service of statutory notice on one of the transferees, and the objection was upheld.

                              Ratio Decidendi: Where initiation of acquisition proceedings is conditioned by mandatory statutory notice requirements, failure to serve notice on every person required by the statute renders the proceedings invalid and the resulting order bad in law.


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                              ActsIncome Tax
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