1999 (6) TMI 13

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....spondent (Sub-Registrar, Dwaraka Nagar, Visakhapatnam), to register the sale deed that may be submitted by the petitioner. The impugned order dated December 10, 1998, reads as follows: "With reference to the above subject, I am to inform you that your application for issuance of a clearance certificate under section 230A of the Income-tax Act cannot be entertained because proceedings of the Anti-Corruption Bureau, Visakhapatnam, initiated in your husband, Sri R. Mohana Rao's case are pending and as seen from the record, these proceedings do have a bearing on the investment of the property contemplated for sale by you. Further, I have been requested by the Anti-Corruption Bureau authorities not to accord any permission for sale or transfer ....

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....t the proceedings initiated against the petitioner's husband under the Prevention of Corruption Act by the Anti-Corruption Bureau has got some bearing on the investment of the property intended to be sold by the petitioner, does not, in our view, constitute a legitimate ground to refuse a certificate under section 230A. Moreover, the second reason mentioned in the impugned order that the Anti-Corruption Bureau requested him not to accord permission for sale or transfer of property, is an irrelevant ground. The mere request by the Anti-Corruption Bureau officials does not absolve respondent No. 1 of the statutory obligation to apply his mind independently with reference to the criteria laid down in clauses (a) and (b) of section 230A(1). Le....

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....an be granted notwithstanding that the partnership is violative of any other law but it does not say so." These weighty observations do not, in any way, come to the aid of the respondents. We have already adverted to the ratio of the decision of the Supreme Court. The registration of the firm cannot be dissociated from the question of lawfulness of the partnership agreement. Moreover, this is not a case where the issuance of the certificate by the Income-tax Officer would have the effect of defeating any provision under the Prevention of Corruption Act. We make it clear that any action taken in accordance with law by the competent court under the provisions of the Prevention of Corruption Act or any other relevant law will not be affected ....