Valuation threshold under income-tax clearance rules applies only to the interest transferred, not the entire property.

Section 230A of the Income-tax Act, 1961 requires the valuation threshold to be tested against the specific right, title or interest actually transferred, not the value of the entire property. Where only an undivided fractional share is released or relinquished, the statutory limit applies only to that share. On that basis, the 3/40th interest transferred was below the prescribed limit, so an income-tax clearance certificate could not be insisted upon. The refusal to register the release deed was therefore unsustainable, and registration had to proceed without requiring the certificate.

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Issues: Whether, for the purpose of section 230A of the Income-tax Act, 1961, the valuation threshold is to be applied to the entire property or only to the right, title or interest actually transferred.

Analysis: Section 230A makes registration conditional on production of an income-tax clearance certificate only where the property or interest sought to be transferred is valued at more than the prescribed limit. The relevant criterion is the value of the right, title or interest of the transferor in the property, not the value of the whole property. Where only a fractional undivided share is released or relinquished, the statutory threshold must be tested with reference to that share alone.

Conclusion: The threshold had to be applied only to the 3/40th share relinquished, and since that interest was below the prescribed limit, the requirement of an income-tax clearance certificate could not be insisted upon. The action of the authorities was therefore unsustainable and the writ petition succeeded.

Final Conclusion: The impugned refusal to register the release deed was set aside and registration was directed without insisting on an income-tax clearance certificate.

Ratio Decidendi: Under section 230A of the Income-tax Act, 1961, the value to be considered is the value of the specific right, title or interest transferred, and not the value of the entire property.

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