9911796707
TMI Blog1990 (3) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty left behind by A. Srinivasan. On April 8, 1987, a family arrangement was entered into under the terms of which it was agreed that the son (4th respondent herein) would take 26%, the wife (5th respondent) 23% and each one of the daughters (respondents Nos. 6 to 8) 17% out of the aforesaid property. The petitioner in W. P. No. 15951 of 1988, the father and the petitioner in W. P. No. 4537 of 1988 who is his son, approached respondents Nos. 4 to 8 with an offer to purchase, and an agreement was entered into between these two petitioners and respondents Nos. 4 to 8 on January 28, 1988. Some of the relevant terms of this agreement have to be noticed for the purpose of deciding the point in issue in these writ petitions. After narrating t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be reduced into writing in the form of an agreement and the same submitted to the appropriate authority nominated in that behalf, the vendors will take steps to apply to the income-tax authorities under Chapter XXC for necessary clearance from acquisition. In the schedule to the agreement, the property conveyed is "all that undivided interest in the piece and parcel of property, site bearing No. 6/104 . . .". In the annexure to Form No. 37-I furnished to the appropriate authority under section 269UC of the Income-tax Act under the heading "Particulars of consideration for transfer", it was indicated that the undivided interest of each one of respondents Nos. 4 to 8, the value of which already referred to, would be conveyed. The appropr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmovable property of value less than twenty lakhs rupees is to be transferred by way of conveyance and, in the instant case, the agreement should be understood as one under which the quantified undivided share in the immovable property is being sold by the individual owners thereof and the sale consideration for such conveyance of the individual shares being less than Rs. 10,00,000, the impugned order made under Chapter XX-C of the Act cannot be sustained. To state more elaborately, the contention of the petitioner is that, on the death of A. Srinivasan, respondents Nos. 4 to 8 being the heirs under the Hindu Succession Act, their shares became fixed and quantified on the date of the demise of their father and it is in that backdrop, they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Chapter XX-C and it is not permissible for them to turn around and contend that there was no need or necessity to obtain clearance from the Income-tax Department. It is further submitted that in Form No. 37-I, the respondents had admitted that the total apparent consideration for the transfer of the above property is Rs. 20,00,000 and, therefore, there is an admission on the part of the respondents that the sale consideration is above Rs. 10,00,000. It is also submitted that the order of the first respondent does not contain any error of law apparent on the face of the records warranting issue of a writ of certiorari. It is submitted that at the most the question whether the individual undivided shares are transferred or whether the prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hare and he cannot deal with the share of another. The property which so fell to the share of each individual will come definitely within the definition of the words "immovable property". Such a sharer was entitled to transfer his immovable property to a third person. Merely because a plurality of such individual owners joined together to enter into one single agreement to transfer their respective shares in favour of one or more persons, that would not make any difference to the main issue that what each transferred is his definite share in the property. Viewed from that perspective, the agreement entered into between the petitioners and respondents Nos. 4 to 8 is to be understood only as an agreement to convey the respective undivided sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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