2014 (8) TMI 122 - HC - Income Tax

Notice u/s 133(6) requiring Sub Registrars to furnish information in respect of transactions relating to immovable property of a value between ₹ 5,00,000/- and ₹ 30,00,000/- Held that - A meeting had taken place when both the Income Tax Department as well as the registering authorities of the State had agreed to work together to resolve the dispute the Court directed the Chief Commissioner of Income Tax, Lucknow and the Inspector General (Stamps and Registration) to hold a further meeting so that the Court could be apprised whether the dispute has been resolved - the dispute has been resolved at the meeting which was held on 17 July 2014. The meeting concluded with the resolution that the SROs shall provide the information called for by the Income Tax Department, as agreed above. However, this shall be without prejudice to the legality of applicability of penal provisions for non-furnishing of information u/s 133(6) in the case of SROs. Thus, the position has been agreed between the Registering Department of the State and the Income Tax Department of the Union Government, no further directions are sought in these proceedings.

Summary

Issues:
Challenge to notices under Section 133(6) of the Income Tax Act, 1961 regarding immovable property transactions between specified values.

Analysis:
The petition was filed by the State of U P and the Inspector General (Registration) challenging notices under Section 133(6) of the Income Tax Act, 1961. The High Court initially directed the Inspector General of Stamps and Registration and the Chief Commissioner of Income Tax, Lucknow to convene a meeting to resolve the issues. Subsequently, it was informed that a meeting had taken place where both parties agreed to work together to resolve the dispute. An affidavit filed by the Joint Director of Income Tax (Intelligence), Kanpur confirmed that a meeting held on 17 July 2014 between the Chief Commissioner of Income Tax, Lucknow and the Inspector General (Stamps and Registration) had resolved the dispute. The minutes of the meeting outlined the agreement reached between the parties.

The agreement stated that Sub-Registrars would provide information on immovable properties within specified value ranges in a prescribed manner, while the Income Tax Department would expedite the disposal of stay of demand petitions. It was also agreed that matters related to amounts already recovered by the Department could be resolved through the appellate procedure under the Income Tax Act, 1961. The meeting concluded with the resolution that Sub-Registrars would furnish the required information to the Income Tax Department as agreed, without prejudice to the legality of penal provisions for non-furnishing of information under Section 133(6).

The High Court noted the agreed position between the State's Registering Department and the Union Government's Income Tax Department, and no further directions were sought in the proceedings. However, the Court directed that appeals against penalty orders imposed on Sub-Registrars should be decided expeditiously, and applications for urgent stay should also be promptly disposed of. Consequently, the petition was disposed of with no order as to costs.