2002 (5) TMI 45

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.... state of Village Neb Sarai, New Delhi. The total sale consideration of the land was fixed at Rs. 35 lakhs. The petitioner in pursuance of the agreement performed his part of the contract and paid the entire consideration to respondent No. 3 as per the terms of the agreement and respondent No. 3 handed over the vacant and physical possession of the plot to the petitioner. Since the sale consideration was more than Rs. 10 lakhs at the relevant time, the provisions of Chapter XX-C of the Income-tax Act were attracted and the parties before getting the sale deed registered were required to submit an application under Chapter XX-C in Form No. 37-I of the Income-tax Act within 15 days of the execution of the said agreement. Admittedly, Form N....

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....ay be prescribed, by each of the parties to such transaction or by any of the parties to such transcation acting on behalf of himself and on behalf of the other parties." The learned Deputy Commissioner of Income-tax (Appropriate Authority) in the impugned order dated September 17, 1991, mentioned that the appropriate authority is of the opinion that the statement of transfer as filed by the parties is not in accordance with the provisions of Chapter XX-C of the Income-tax Act, 1961, because there is no intended transfer of immovable property. In the instant case, the transfer had taken place before the application under Chapter XX-C in Form No. 37-I was filed. He further mentioned that the transferor has defeated the scheme of the Act o....

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.... "We agree that two alternatives are open under the scheme of the legislation: (i) the Union of India through the appropriate authority could buy the property, or (ii) in the event of its decision not to buy, it has to issue a 'no objection certificate' leaving it open to the parties to deal with the property. In that view of the matter, the High Court was right in its conclusion." This judgment has been followed in a number of subsequent judgments. A Division Bench of this court delivered in C.W.No. 4452 of 1996 titled G.J. Malik v. Appropriate Authority [1999] 238 ITR 496, followed the earlier judgment of Tanvi Trading [1991] 188 ITR 623--on appeal [1991] 191 ITR 307 (SC) and quashed the order of the appropriate authority. Another Div....