Section 230A clearance applies only when property value crosses the statutory threshold under applicable circle rates.

A no-objection certificate under section 230A of the Income-tax Act was required only for transfers where the property value exceeded the statutory threshold of Rs. 2 lakhs. The property value had to be determined first by the Sub-Registrar on the basis of the circle rates fixed by the Collector concerned, and the certificate could be insisted upon only if that valuation crossed the threshold. Where the assessed value did not exceed the limit, insistence on the certificate was not permitted.

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Issues: Whether a no-objection certificate under section 230A of the Income-tax Act, 1961 was required for registration of a sale deed only where the value of the property to be transferred exceeded Rs. 2 lakhs, and whether such value was to be determined on the basis of circle rates fixed by the Collector.

Analysis: The Court accepted the Income-tax Department's clarification that the clearance requirement under section 230A applied only to transfers where the value of the property exceeded Rs. 2 lakhs. It further held that the Sub-Registrar must first determine the value of the property sought to be transferred according to the circle rates fixed by the Collector concerned, and then insist on production of the certificate only if that valuation crossed the statutory threshold.

Conclusion: The no-objection certificate was required only when the property value, as determined by the applicable circle rates, exceeded Rs. 2 lakhs; in other cases, no such insistence could be made.

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