Chapter XX-C clearance cannot be refused on alleged artificial bifurcation when the authority must either purchase or issue the certificate.

Under Chapter XX-C, the Appropriate Authority's power is confined to a binary choice: it may either order pre-emptive purchase within the prescribed time or, if that power is not exercised, issue the no objection certificate. It cannot reject Form No. 37-I or refuse clearance on a third ground such as alleged artificial bifurcation, defect, or commercial inconvenience in the transaction. The statutory scheme in section 269UC read with Rule 48L does not authorise a refusal outside that choice, so the rejection of the statement and denial of the certificate were unjustified.

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Issues: Whether the Appropriate Authority could reject the statement in Form No. 37-I and refuse to issue a no objection certificate on the ground that the property had been artificially bifurcated, instead of either exercising the power of pre-emptive purchase or granting clearance under Chapter XX-C.

Analysis: The statutory scheme under section 269UC read with Rule 48L requires filing of the prescribed statement in respect of transfers covered by Chapter XX-C. Under section 269UD(1), the Appropriate Authority may order purchase within the prescribed time, and if that power is not exercised, section 269UL(3) contemplates issue of the no objection certificate. The scheme does not confer a third power to reject the statement on the ground that the transfer is allegedly artificial, defective, or commercially inconvenient. The authority's role is confined to deciding whether to purchase at the apparent consideration or to permit the transfer by issuing the certificate, and it cannot refuse both on considerations extraneous to that statutory choice.

Conclusion: The rejection of the statement and the refusal to grant the no objection certificate were not justified. The writ appeal failed and the assessee's challenge succeeded.

Ratio Decidendi: Under Chapter XX-C, the Appropriate Authority has only the binary statutory choice to purchase the property within time or issue the no objection certificate, and it cannot create a third ground of rejection by questioning the validity, convenience, or alleged artificiality of the transaction.

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