Income-tax clearance under section 230A does not apply to a confirming party without transferable interest in land.

Section 230A of the Income-tax Act barred registration only where the document dealt with a person's transferable right, title or interest, and a contract for sale under section 54 of the Transfer of Property Act did not itself create any interest in immovable property. A confirming party who had no transferable interest and was not the owner-transferor under the conveyance was therefore outside the scope of the clearance requirement. The explanation in section 2(6) of the Registration Act could not be expanded beyond its scheme, and the phrase covering other benefits arising out of land had to be read ejusdem generis. The confirming party was not required to obtain an income-tax clearance certificate.

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Issues: Whether a confirming party to an agreement for sale, who had no transferable right, title or interest in the property and who was not the owner-transferor under the deed of conveyance, was required to obtain an income-tax clearance certificate under section 230A of the Income-tax Act before the registration of the sale deed.

Analysis: Section 230A operates as a safeguard against tax evasion and bars registration only when the document purports to transfer, assign, limit or extinguish the right, title or interest of the person whose property is sought to be dealt with. Under section 54 of the Transfer of Property Act, a contract for sale of immovable property does not by itself create any interest in or charge on the property. The confirming party in the present transaction acquired no saleable or transferable interest by the mere agreement for sale, and the description of immovable property in section 2(6) of the Registration Act could not be expanded to treat such a confirming party as a person whose interest in land was being transferred. The expression relating to any other benefit arising out of land had to be read on the principle of ejusdem generis and could not override the clear scheme of the Transfer of Property Act and section 230A.

Conclusion: The confirming party was not required to obtain an income-tax clearance certificate, and the Registrar was not justified in withholding registration on that ground.

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