TaxTMI 
TaxTMI 
TaxTMI 
2004 (4) TMI 4
X X X X Extracts X X X X
X X X X Extracts X X X X
....000. Proceedings for acquisition of the property were then initiated in accordance with Chapter XX-A of the Income-tax Act, 1961 (hereinafter referred to as "the Act") and notice under section 269D(1) of the Act was published in the Official Gazette on November 15,1980. The notices issued under section 269D(2) of the Act were served upon the transferor and the transferee on October 10, 1980. The competent authority, after hearing the objections, passed orders for acquisition of the property. The appeals preferred against the said order by the transferor and the transferee were allowed by the Income-tax Appellate Tribunal, Chandigarh, and the order of the competent authority was set aside mainly on the ground that the notices under section 269D(2) had been served prior to the publication of the notice in the Official Gazette. Feeling aggrieved by the order of the Tribunal the Commissioner of Income-tax, preferred an appeal under section 269H of the Act but the same was dismissed by the High Court on July 21,1999. The High Court has held that by the publication of the notice in the Official Gazette proceedings for acquisition of property were initiated and the service of the notice o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er in this Chapter referred to as 'the transferee') for an apparent consideration which is less than the fair market value of the property and that the consideration for such transfer as agreed to between the parties has not been truly stated in the instrument of transfer with the object of (a) facilitating the reduction or evasion of the liability of the transferor to pay tax under this Act in respect of any income arising from the transfer; or (b) facilitating the concealment of any income or any moneys or other assets which have not been or which ought to be disclosed by the transferee for the purposes of the Indian Income-tax Act, 1922 (11 of 1922), or this Act or the Wealth-tax Act, 1957 (27 of 1957), the competent authority may, subject to the provisions of this Chapter, initiate proceedings for the acquisition of such property under this Chapter: Provided that before initiating such proceedings, the competent authority shall record his reasons for doing so. Provided further . . . (omitted as not relevant). (2) . . . . (omitted as not relevant). 269D. (1) The competent authority shall initiate proceedings for the acquisition, under this Chapter, of any immovable prop....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is not in occupation thereof, and also on every person whom the competent authority knows to be interested in the property. In view of clause (b) of sub-section (2), the notice has to be published in the office by affixing a copy thereof to a conspicuous place and in the locality in which the immovable property to which it relates is situate. Section 269E enables the transferor or the transferee or any person referred to in clause (a) of sub-section (2) of section 269D to file an objection in writing against the acquisition of the immovable property in respect of which a notice has been published in the Official Gazette before the competent authority. In view of the express language used, the proceedings for acquisition of property can be initiated only by publication of the notice in the Official Gazette and until the publication is so made, the proceedings cannot be deemed to have been initiated. The first proviso to sub-section (1) of section 269D lays down a period of limitation for initiation of such proceedings which is nine months from the end of the month in which the instrument of transfer in respect of such property is registered under the Registration Act. Therefore, in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ence to the said date. The competent authority gets the jurisdiction to make an order for acquisition of property only after publication of the notice in the Official Gazette. The word "jurisdiction" implies a court or tribunal with judicial power to hear and determine a cause, and such tribunal cannot exist except by authority of law. Jurisdiction always emanates directly and immediately from the law; it is a power which nobody on whom the law has not conferred it can exercise. In other words, "jurisdiction" has reference to the power of the court or tribunal over the subject matter, over the res or property in contest, and to the authority of the court to render the judgment or decree it assumes to make. It is in this sense that the publication of the notice in the Official Gazette confers jurisdiction on the competent authority to take proceedings for acquisition of immovable properties under Chapter XX-A of the Act. The service of notice under sub-section (2) of section 269D upon the transferor and transferee meets the requirement of natural justice so that they may file objections in writing against the action which is proposed to be taken, namely for acquisition of property. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ings for acquisition of immovable property is conferred on the Inspecting Assistant Commissioner by Chapter XX-A of the Act and the orders made by the Government appointing him as the authority to decide the cause. Every error committed by the Inspecting Assistant Commissioner in the exercise of his own jurisdiction cannot be treated as outside his own jurisdiction and they are all errors in but not of jurisdiction. Accordingly, the error, if any, committed by the Inspecting Assistant Commissioner in issuing notices under section 269D(2)(a) before the publication of the notice in the gazette was an error within his own undoubted jurisdiction and was not a case of assumption of jurisdiction and the Tribunal in holding otherwise and invalidating the proceedings on that ground was clearly in error. In All India Reporter Ltd. v. Competent Authority [1986] 162 ITR 697 (Appex.), the Bombay High Court held that the giving of individual notices and locality notice are not jurisdictional requirements, non-compliance with which must result in invalidating of initiation of acquisition proceedings. It was further held that the manner of service of this notice is only directory and not mandator....