9911796707
TMI Blog2007 (8) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration" is concerned what can be deducted are only the amount as statutorily provided under the section in the Chapter and no other amounts. The amount of transfer fee not being statutory, therefore, could not have been deducted. The result would be that on the order being- passed the property vested in the Government free from all encumbrances. The question of the Government paying any transfer fees or for that matter stamp duty or registration fees would not arise. This would be yet another reason to hold that the Government could not have retained any amount towards the transfer fees. Once that be the case the petition in so far as the deduction will have to be allowed. Thus the petition is allowed to the extent that the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed an order under sub-section (1) of section 269UD dated August 27, 1992. The Tribunal noted that by the agreement of June 30, 1992, Rs. 2,35,111 was paid as earnest money and a sum of Rs. 21,15,000 was to be paid within a period of 30 days from the receipt of no objection certificate under section 269UN (3) of the Income-tax Act 1961. The members of the appropriate authority observed that as that payment was deferred for three months, in terms of the provisions of section 269UA(b) read with rule 48-I by an amount had to be discounted for three months and thus worked out to Rs. 40,291 and thus the compensation payable was Rs. 23,09,820 out of Rs. 23,50,111. The appropriate authority also considering clause (15) held that the vendor is to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be transferred at an undervaluation. To determine whether there has been an undervaluation, the true consideration for the transfer has to be determined and, necessarily, it has to be determined as on the date of the agreement for transfer. That this is so clear from the latter part of clause (b), which we have quoted; the phrase 'the discounted value of such consideration as on the date of such agreement for transfer and therein indicates the point of time from which the period for discounting must be calculated'." From this judgment, it will be clear that the view taken by this court is no longer good law and for the purpose of considering the discounted price what has to be taken is the date of the agreement. We now come to the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty and registration fees were capable of being ascertained on that day as they were fixed under the relevant provisions of the Indian Registration Act and the Bombay Stamp Act. The learned Bench noting the definition of apparent consideration, ruled out deduction of any unascertained amount of consideration as it contemplated only certain specified amount of consideration and that the amount envisaged in clause 14 cannot be treated to be part and parcel of the scheme of apparent consideration. This judgment came up for consideration before a learned Bench of this court in Polycon Paper Ltd. v. Union of India [2002] 253 ITR 182. The question before this court was about the interpretation of applicability of the definition of apparent con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0urt in Polycon Paper Ltd. [2002] 253 ITR 182 pertained to the payment of registration and stamp duty whereas in our case it is transfer fee to the society and as such that judgment is distinguishable. In our opinion, that is not the ratio of the judgment of this court or the Gujarat High Court. The ratio as is apparent from the judgment would be that in so far as "apparent consideration" is concerned what can be deducted are only the amount as statutorily provided under the section in the Chapter and no other amounts. The amount of transfer fee not being statutory, therefore, could not have been deducted. It may also be noted that on payment of the consideration by virtue of section 269UE a further order is made under sub-section (1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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