9911796707
TMI Blog1991 (8) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... by a registered sale deed dated March 26, 1981, for a sum of Rs. 90,000 mentioning in the sale deed that a lesser consideration is being charged from him for the sale of this property on account of natural love and affection for him. Likewise, he transferred 4 shops to Shri Vikram Singh, his grandson, for a sum of Rs. 55,000, vide a registered sale deed dated March 25, 1981, which sale forms the subject-matter of Writ Petition No. 1384 of 1981. The contention of the petitioners is that this transfer for a lesser consideration is actuated by natural love and affection for the seller's grandson, Shri Vikram Singh, in whose favour these properties have been transferred. When the income-tax authorities were informed about these sale deeds whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is less than its fair market value if a recital to that effect is made in the instrument of transfer." This section of Chapter XX-A was in force at the time when these sale deeds were executed and registered. This entire chapter was deleted from the statute book by introducing section 269RR with effect from September 30, 1986, and, thereafter, it was substituted by Chapter XX-C. Now the transfers which have been made after September 30, 1986, are governed by the provisions of the aforesaid Chapter XX-C of the Incometax Act. The application of Chapter XX-A is exempted in case of transfers which are made in favour of the relatives for lesser consideration on account of natural love and affection. Whether a transfer has been made in fav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erent matter but, in this case, in the reply that has been filed by the Department, it has not been contended that this sale deed has not been executed by the seller in favour of the purchaser on account of natural love or affection for his grandson (his legal relation), but it has been made for the mala fide purpose of avoiding the tax. When that plea is not there, then section 269 of Chapter XX-A is fully applicable. It means that the provisions of Chapter XX-A of the Income-tax Act are applicable to the cases of such transfers of immovable properties transferred prior to September 30, 1986, as they are covered by section 269Q of Chapter XX-A of the Income-tax Act. The result is that these writ petitions deserve to be allowed and the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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