9911796707
TMI Blog1997 (5) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... namely, Rupinder Kaur, wife of Gurbir Inder Singh, and Gurbir Inder Singh son of Suchet Singh, sold their agricultural land measuring 86 kanals 6 marlas situated at Village Sultanpur and a farm house thereon along with fruit trees to United Farms, Village Sultanpur, Tehsil Kharar, for a consideration of Rs. 5 lakhs. The Inspecting Assistant Commissioner of Income-tax, Acquisition Range, Ludhiana (hereinafter referred to as "the competent authority"), after issuing notice to the transferors and the transferee initiated the proceedings for acquiring the land under Chapter XX-A of the Act. Several objections were raised by the transferee against the acquisition of the property. One of the pleas taken was that the Central Board of Direct Taxes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of transfer, the property was ordered to be acquired. In appeal, the Tribunal accepted both the contentions raised by the transferee. It was held that the apparent consideration had to be taken separately in the hands of each of the transferors as per their share in the land. Similarly, it was held that the transferee in this case, was United Farms, which consisted of 10 partners, out of which one was having 20 per cent, share, seven were having 10 per cent. and two 5 per cent. share each. The apparent consideration in the hands of each of the transferees was less than Rs. 5 lakhs. in either case, whether in the hands of the transferors or in the hands of the transferees, the apparent consideration individually was less than Rs. 5 lakhs, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61. It was held that the Board did not mean to limit the applicability of the circular to the proceedings pending at the initial stage only. The word "proceedings" occurring in the circular was not qualified by the word "initial" and, therefore, the word "proceedings", shall include the proceedings at the appeal stage as well. The circular did not use any expression limiting its applicability with reference to any date of transfer of the property. No proceedings were to be initiated after the date of issuance of the circular and if any proceedings had been initiated by issue of notice under section 269D, the same were to be dropped, if the apparent consideration of the immovable property was below Rs. 5 lakhs. Following the dictum of this c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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