Delhi High Court
Express Towers (P) Ltd. & Anr. vs Dy. Cit & Ors. on 12 December, 2001
Equivalent citations: (2002)173CTR(DEL)447
JUDGMENT
By the Court In this writ petition the petitioner has, inter alia, prayed for issuance of appropriate writ or writ of certiorari for quashing the letter No. AA/JTCIT/SLP/2001-2002/259, dated 10-7-2001 whereby petitioner herein was directed to deposit a sum of Rs. 22,50,000 plus interest @ 18 per cent from the date of receipt of the money till its deposit in the Government of India account.
2. The brief facts of this case are as follows :
On 21-5-1987, the respondents 5 and 6 entered into an agreement to sell for the sale of the property No. B-7/118 Safdarjung Enclave Extension, New Delhi, for a total consideration of Rs. 23,50,000. As per the requirement under Chapter XX-C of the Income Tax Act, the petitioners and the previous owners filed for 'No objection certificate' in Form No. 37-I to the Appropriate Authority on 27-5-1987. The Appropriate Authority passed order dated 10-7-1987, for presemptive purchase. The petitioners challenged this order by filing a civil writ petn No. 2275/87 in this court. This writ petition was ultimately allowed by order dated 1-3-1993, on the ground that before passing such an order it was necessary for the Appropriate Authority to issue show-cause notice. Thereafter, the Appropriate Authority issued show-cause notice and after hearing the petitioners passed order of pre-emptive purchase vide order dated 28-5-1993. The petitioners filed civil writ petn. No. 4357/93 challenging this order. This writ petition was allowed by order dated 17-12-1997. (reported as Mrs. Kailash Suneja Express Towers (P) Ltd. & Co. v. Appropriate Authority & Ors. (1998) 2 DTC 549 (Del-HC) : (1998) 231 ITR 318 (Del). Appeal filed by the revenue was dismissed by the Supreme Court by order dated 10-5-2001. (reported as Dy. CIT v. Express Towers (P) Ltd. (2001) 21 DTC 633 (SC) : (1998) 249 ITR 556 (SC). After the dismissal of the appeal, the petitioners made representations for returning the possession of the property in question and asking them to accept the amount of sale consideration paid by the respondents without any interest. However, vide communication dated 24-7-2001, the respondents demanded interest on the amount of sale consideration paid by them to the petitioner under Chapter XXC of the Income Tax Act. The petitioner challenged the demand of interest and it is for this reason the present appeal is filed.
3. The point at issue is squarely covered by decision of the Division Bench of this court in the case of Smt. Jaspal Kaur & Ors. v. Union of India (2000) 13 DTC 158 (Del-HC) : (1999) 240 ITR 493 (Del). The relevant portion of this case reads as follows :
"The amount of balance consideration paid by the Appropriate Authority to the vendee was in accordance with their statutory liability on account of having passed an order of preemptory purchase of the property. At best it can be said that the purchasers did not have to part with the amount of Rs. 13.5 lakhs which was the balance sale consideration and this money remained with them. In our view deprivation of the use and fruits of the property to the purchasers, i.e., the petitioners herein was a greater loss to them as compared to the meager amount of interest which assembly they could have earned on that amount. The purchasers had to keep the amount always ready and available and they could not have utilised the amount for other investments. We feel it would be inequitable to ask the purchasers to pay any interest whatsoever on this amount. As already noted the amount of Rs. 13.5 lakhs has already been deposited by the petitioners with respondent No. 2 on 23-4-1999. The prayer of the respondent No. 2 for award of interest on the amount of Rs. 13,50,000 is accordingly rejected. Respondent No. 2 is directed to issue the "No objection certificate" in terms of section 269UL(3) of the Income Tax Act forthwith, not later than four weeks from the date of this order and simultaneously deliver the possession of the property to the vendee. "
4. The aforesaid decision in binding on this Bench. In that view of the matter we allow this writ petition and direct and dispose of the same and direct the petitioner to deposit a sum of Rs. 22,50,000 within a period of three weeks from today with the Appropriate Authority whereupon 'No objection certificate' in terms of section 269UL(3) and possession of the property along with title deeds as well as other papers, if any shall be handed over within two weeks thereafter.
OPEN