Mutta Venkata Ramana & 5 others V. The Income Tax Officer Ward 2(2), Range-2 Visakhapatnam & 2 others

WP/12269/2013

AI Insights

The case involves petitioners who purchased and developed land in Jarajapupeta village, creating a layout named 'Taj Baba Nagar'. They sold plots within this layout, including some to SIMS. When the petitioners attempted to sell their remaining plots, they were informed by the Sub-Registrar that an attachment order from the Income Tax Authorities under Section 281-B of the Income Tax Act, 1961, prevented the registration of their sale documents. The petitioners challenged this action, leading to the court's decision to limit the attachment to only those plots owned by SIMS, allowing the registration of documents for other plots.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 677688 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 06-06-2013
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961, Registration Act, 1908, Indian Stamp Act, 1899
• Result in Favour of: Others
• Court: HIGH COURT
• Keywords: Attachment Order; Income Tax Authorities; Land Use Conversion; Registration Refusal; Layout
• Section: 281-B

Judgement Text

"HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION No.12269 of 2013 DATED: 06.06.2013 Between: Mutta Venkata Ramana & 5 others ... Petitioners And The Income Tax Officer Ward 2(2), Range-2 Visakhapatnam & 2 others … Respondents The Court made the following: HON’BLE SRI JUSTICE SANJAY KUMAR WRIT PETITION No.12269 of 2013 ORDER: The petitioners claimed to have purchased various extents of land in Sy.Nos.85, 86P, 90P, 91, 92, 93, 94P, 96P and 97P of Jarajapupeta village, Nellimarla Mandal, Vizianagaram district, under registered sale deeds. Upon obtaining necessary permission for conversion of land use, they claimed to have prepared a lay out in respect of these lands under the name and style of ‘Taj Baba Nagar’. They further stated that they sold various plots in this lay out and some such plots were purchased by M/s Secured Investment Making Services (India) Pvt. Ltd., (SIMS). It is the case of the petitioners that after selling these plots, they continued to remain in possession of various plots as set out in the affidavit filed in support of the writ petition. While so, when they proposed to alienate these plots, they were informed by the Sub-Registrar, Nellimarla, the 3rd respondent, that the said documents would not be entertained for registration in view of the attachment order passed by the Income Tax Authorities under Section 281-B of the Income Tax Act, 1961. Assailing this action of the 3rd respondent, the petitioners are before this Court. 2. In his counter, the 3rd respondent referred to the attachment order passed by the Income Tax Authorities against SIMS and also the communication received from the Police Authorities with regard to stoppage of transactions involving assets belonging to SIMS owing to the alleged fraud committed by it. While stating that the petitioners did not present any documents for registration, the 3rd respondent concluded that in the event they present any document for registration, action would be taken as per the Rules. 3. In the light of the stand adopted by the 3rd respondent in the counter, it is clear that even if the petitioners present a document for registration in respect of their plots in the subject survey numbers the document is bound to be rejected owing to the attachment order passed by the Income Tax Authorities. It is however relevant to note that the said attachment order was passed only against SIMS in respect of its assets. It is admitted that SIMS owns certain plots in Taj Baba Nagar, the lay out effected by the petitioners in the subject survey numbers. Therefore, the attachment passed by the Income Tax Authorities would have to be limited to plots owned by SIMS in the said lay out and cannot be extended to the plots owned by others, including the petitioners herein. The 3rd respondent would therefore have to undertake identification of the plots in Taj Baba Nagar owned by SIMS and limit the attachment effected under Section 281-B of the Income Tax Act, 1961, to such plots alone. The said attachment can have no effect over the plots belonging to third parties in the said survey numbers. 4. The writ petition is accordingly disposed of directing the 3rd respondent to undertake the above exercise and in the event, the documents presented by the petitioners for registration pertain to plots other than those owned by SIMS, the 3rd respondent shall receive and process the said documents in accordance with law. If such documents presented by the petitioners are otherwise found to fulfill the requirements of the Registration Act, 1908 and the Indian Stamp Act, 1899, the Sub-Registrar, Nellimarla, shall complete the registration formalities and release the documents in accordance with the due procedure. WP MP No.15167 of 2013 shall stand closed in the light of this final order. No costs. _________________ SANJAY KUMAR, J Date: 06.06.2013 BSS "