TaxTMI 
TaxTMI 
1994 (7) TMI 5
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....r, Dr. Chandrakant D. Raval and Mrs. Kumudbala C. Raval, entered into an agreement with Manibhadra Association for sale of 460 sq. yds. of plot for a consideration of Rs. 16 lakhs. In both the cases, on receipt of the statement in Form No. 37-I, the appropriate authority constituted under section 269UD of Chapter XX-C of the Income-tax Act, made two separate orders in respect of both the agreements on February 20, 1991, for purchasing the properties specified in the two agreements, by the Central Government in terms of section 269UD of the Income-tax Act. While determining the consideration to be paid to the transferee, the appropriate authority decided to deduct two sums. In the first instance, it decided to deduct Rs. 49,008 out of the ....
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....nder the provisions of Chapter XX-C under section 269UF is the amount equal to the amount of the apparent consideration. The term "apparent consideration" has been defined under section 269UA(b) and the only adjustment of the apparent consideration to be made is regarding designated value of such consi deration as on the date of the agreement for transfer by deducting such rate of interest as has been prescribed in respect of the amounts payable by the transferee after the date of such agreement for sale. Learned counsel for the Revenue contests both the contentions and supports the decision of the appropriate authority. He contends that deduction on account of deferred payment after the date of the transfer by adopting the prescribed rate....
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....iscounted value of such consideration, as on the date of such agreement for transfer, determined by adopting such rate of interest as may be prescribed in this behalf." According to us, where any part of the consideration referred to in the agreement for transfer is payable after the date of such agreement for transfer, the apparent consideration on the basis of Chapter XX-C has to be the discounted value on the date of the agreement for transfer by adopting such rate of interest as prescribed in this behalf and that is what has been done by the appropriate authority through impugned orders. However, the second contention of learned counsel for the petitioner has force. Stamp duty and registration charges were payable only in the case, th....
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....he transferor. In this connection, it. will not be out of place to make reference to section 269UG which permits the appropriate authority to set off certain amounts against apparent consideration payable to the transferor. The enumeration of such set off under section 269UG also does not include any such liability regarding stamp duty and registration charges, which transferor may have undertaken to bear as part of conveyance expenses in connection with a particular transaction. The set off is restricted to liability for any tax or any other sum remaining payable under the Income-tax Act, 1961, the Gift-tax Act, the Estate Duty Act, the Wealth-tax Act, or the Companies Act, but no other liability on account of any tax is permissible to be ....