2003 (5) TMI 25

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....ion the petitioners pray for quashing of an order dated November 20/21, 1990, passed by the appropriate authority under Chapter XX-C of the Income-tax Act, 1961 (for short "the Act"), and a direction to the said authority to grant "no objection certificate" under section 269UL(3) of the Act. Briefly stated, the background facts giving rise to the petition are as follows: On September 20, 199....

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....d restrained respondent No.3 from alienating, encumbering or parting with possession of the property and since the said order had not been vacated when the agreement to sell was entered into, respondent No.3 was not competent to sell the property; sign and verify the statement in Form No. 37-I. Consequently, the statement filed being invalid, no action could be taken thereupon. Aggrieved by the....

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.... a Division Bench of this court, speaking through, R.C. Lahoti J. (as his Lordship then was), taking note of a large number of decided cases on the issue, including Appropriate Authority v. Tanvi Trading and Credits (P.) Ltd. [1991] 191 ITR 307 (SC) culled out the following principles to be kept in view while dealing with a statement filed under the said Chapter: (i) When there is a proposal fo....

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....of the agreement to transfer immovable property, the legality of the transaction or the title of the vendor. Thus, it is now well settled that on a statement being filed under section 269UC of the Act, the appropriate authority has two options available to it, namely, (i) either to purchase a property by exercising the right of preemptive purchase by making an order under section 269UD; or (ii)....