TaxTMI 
TaxTMI 
2010 (10) TMI 155
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....lotment was issued on April 24, 1994 for a consideration of Rs. 23,80,387. The petitioner was assigned the allocation vide letter datedFebruary 21, 1995. Thereafter, an agreement was entered into by the petitioner, the assignee, with the third respondent, the developer onJune 12, 1996. After the land was developed, the assignee/nominee filed an application in Form No. 37-I before the Appropriate Authority onAugust 24, 2000. 4. As further set forth, a notice under section 269UD(1) of the Act determining the value at Rs. 57,39,353 on the basis of the market value on the date of determination was sent by the Appropriate Authority on November 10, 2000. At that juncture, the third respondent, the developer, appeared before the Appropriate Authority and put forth its submission that the valuation should be with reference to the agreement datedFebruary 24, 1994as that was the date of agreement which was entered into with the original allottee by the developer. 5. Before the Appropriate Authority, the decision rendered in Ansal Properties and Industries Ltd. v. Appropriate Authority [1999] 236 ITR 793 (Delhi) was pressed into service. 6. The Appropriate Authority vi....
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....uled in DLF Universal Ltd. [2000] 243 ITR 730 (SC) though actually the entire decision has not been overruled. In DLF Universal Ltd. [2000] 243 ITR 730 (SC) in paragraph 6, the apex court reproduced the conclusions arrived at by the High Court. It reads as follows (page 742) : "6. There is no dispute that the agreement for transfer, which has been reduced into writing in Form 37-I, pertains to immovable property and amounts to transfer of immovable property within the meaning of clauses (d) and (f) of section 269UA. The High Court, after examining the terms of the agreement and the provisions of Chapter XX-C, reached various findings in paragraph 28 of the judgment, which we reproduce : `To sum up, our findings are : (i) Agreement for transfer as defined in clause (a) of section 269UA refers to an agreement which is entered into privately between the parties thereto ; such an agreement may be oral or in writing. (ii) An agreement for transfer entered into by the parties in Form 37-I under section 269UC is not an agreement defined by clause (a) of section 269UA. It is an agreement statutorily ordained to be entered into in a prescribed proforma.  ....
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....ilable all the particulars contemplated by several clauses of Form 37-I consistently with the nature of the property. The date of entering into the proforma agreement must have proximity of relationship by time with the proposed transfer of property as defined in clause (f) of section 269UA. The test for determining proximity of relationship is the availability of the property agreed to be transferred in such status in which it is proposed to be transferred. (x) A no objection certificate issued by the Appropriate Authority based on an agreement for transfer of property to be constructed cannot be utilised for securing registration of property which has been constructed'." Thereafter, their Lordships proceeded to state as follows (page 744) : "7. Agreement for transfer and statement in Form 37-I are two different documents. As rightly held by the High Court agreement for transfer can be oral as well as in writing but then this agreement for transfer has to be reduced in writing in Form 37-I. The High Court has held that in certain sections in Chapter XX-C `agreement for transfer' in fact means statement in Form 37-I as mentioned in subparagraph (iii) of its finding....
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....199 ITR 530 (SC) it can exercise its jurisdiction to acquire the property if consideration agreed to is less than 15 per cent. of the market value. Mr. Verma, who appeared for the Appropriate Authority, said that the agreement for transfer contains variables and unless all these are known, the Appropriate Authority will be handicapped in making an order under section 269UD. The variables which form terms in the agreement for transfer are external development charges that may be levied by the State ofHaryanaand price escalation up to 20 per cent. of the agreed consideration. It is a matter of common knowledge that in course of time, there can be escalation in the prices of various articles like steel, cement, labour etc. One can say with certainty that price escalation would be within the limit of 20 per cent. escalation and the external development charges that may be levied by the State ofHaryanawould be on certain set principles. The provisions of Chapter XX-C do not require the parties to enter into more than one agreement for transfer. It is on the basis of the terms of that agreement for transfer which is reduced into writing in the shape of Form 37-I that the Appropriate Auth....