Statement u/s 269AB. - Income Tax - 1669/CBDT

INSTRUCTION NO. 1669/CBDT Dated: October 12, 1985 Under section 269AB of the Income-tax Act, 1961 a statement in prescribed form is required to be furnished by the parties to the specified transaction. The statement is to be registered with the Competent Authority in such manner and within such time as may be prescribed. Rule 48DD(2) has prescribed the period of 30 days from the date of the transaction for furnishing the statement. Rules 48DD(4) requires the Competent Authority to make an order registering the same within a period of 60 days from the date of receipt by him of the statement. After such registration, the statement is construed an instrument of transfer' within the meaning of Section 269A(f) on the basis of which the proceedings for acquisition can be initiated. The time-limit for initiating proceedings for acquisition in such cases as laid down under section 269D(1) is a period of 9 months from the end of the month in which the registration as aforesaid take place. 2.A question has been raised as to whether registration can be made and the acquisition proceedings can be initiated in cases where Forms No. 37EE are received beyond expiry of the time of 30 days prescribed by Rule 48DD(2). (The Board have been advised that Rule 48DD does not prohibit registration of statements filed beyond 30 days). In such cases the aforesaid period of limitation of nine months for issuing notices u/s 269D(1) should be computed from the date of registration of the belated statement. 3. In cases of belated submission to statements in Form No. 37EE, action can be taken u/s 276AA of the Act for non-compliance with the provisions of section 269AB. Action u/s 276AA is, however, not a bar to the registration of the statements beyond 30 days. But Commissioners should make it a point to initiate prosecution in all cases of delay whenever it is un-reasonable. 4. The above legal position may please be brought to the notice of all the concerned officers in your Charge.