9911796707
TMI Blog1989 (5) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... r at that time paid a sum of Rs. 10 lakhs to the fourth respondent. A statement of transfer of immovable property as required under section 269UC was filed before the appropriate authority, in Form No. 37-I as prescribed, which, on examination of the same, came to the conclusion that the property be purchased by the Central Government at an amount equivalent to the amount of "apparent consideration" which was the consideration for which the fourth respondent agreed to sell the property to the petitioner. This order is under challenge in the writ petition. The petitioner has prayed that Chapter XXC of the Act containing sections 269U to 269UO be declared unconstitutional and that respondents Nos. 1, 2 and 3 be restrained from taking any action in terms of the order passed under section 269UD(1) of the Act by the appropriate authority. There are four respondents. The first respondent is the Central Government, the second is the appropriate authority and the third is the Central Board of Direct Taxes. The fourth respondent, as noted above, is the owner of the property in question. When the writ petition came up for admission, Rule D. B. was issued and by way of interim order, it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn risk and responsibility. The Department was, however, given the right to inspect the property after giving notice to the petitioner, the purchaser. Mr. Harbans Lal, appearing for the seller, submitted that he was not necessary party in these proceedings as he did not challenge the impugned order of the appropriate authority. He said the seller was not interested either way and he was only interested in getting his balance sale consideration and to execute the sale deed. It was submitted that though the question of payment of interest was considered in some of the interim orders referred to earlier the question about the liability of the seller to capital gains tax or wealth-tax was not taken into consideration. Mr. Harbans Lal said that the seller could be saddled with the liability of capital gains tax or that in any case he would be subjected to wealth-tax. He said that the seller had purchased the plot in question for a total consideration of Rs. 4,007.66 while he was selling the same for an amount of over Rs. 28 lakhs. Because of these considerations, it was submitted that the order for payment of interest at the time of disposal of the writ petition would not be just. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the month in which the property becomes vested in the Central Government (section 269UG). On the failure on the part of the Central Government to make the payment within the period specified, the order passed under section 269UD shall stand abrogated and the immovable property shall stand re-vested in the transferor after the expiry of that period (section 269UH). Then, there are provisions in Chapter XXC putting restrictions on the revocation or alteration of the agreement for transfer of the property, restrictions on registration, etc., and immunity to the transferor against claims of the transferee for transfer. Under section 269UN, the order of the appropriate authority passed under section 269UD is final and conclusive. "Transfer", under section 2(47), in relation to a capital asset, includes, (i) the sale, exchange or relinquishment of the asset ; or (ii) the extinguishment of any rights therein ; or (iii) the compulsory acquisition thereof, under any law ; or . . . Under section 45 of the Act, any profits or gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in sections 53, 54, 54B, 54D, 54E and 54F, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equisitioned and then compulsorily acquired by the State Government. The Land Acquisition Officer awarded a certain amount as compensation, which was enhanced by the arbitrator. The Supreme Court was considering whether the enhanced amount of compensation could be taxed as the income of the assessee for a particular assessment year, Considering the facts of the present case and the aforesaid provisions of law, the seller has raised important questions requiring immediate determination, particularly when it cannot be said as to when the writ petition would itself be disposed of. In fact, we have been told that the Supreme Court is seized of the matter and various writ petitions pending in this court are awaiting the decision of the Supreme Court though, as noted above, it was submitted that the seller might not, be subjected to either capital gains tax or wealth-tax, but nobody is quite sure about the exact position. We do not want to say anything on the subject as the matter will have to be dealt by the income-tax and wealth-tax authorities under the provisions of the law, but then the seller may be involved in legal battles with the Income-tax Department which are not of his mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat money during the pendency of the writ petition or without further orders of the court and he shall file an undertaking to that effect within two weeks with the Registrar of this court. In the event the petitioner succeeds in the writ petition, the fourth respondent shall execute the sale deed and get it registered in terms of the agreement for transfer between the parties. (iii) In case the petitioner commits default in making payment of the balance consideration as aforesaid, the interim orders made earlier shall stand vacated and necessary consequences as contained in Chapter XXC of the Act shall follow as from the date when the stay stands vacated. (iv) The property in question shall be in custodia legis and the concerned Commissioner of Income-tax is appointed receiver of the same. This is necessary in order to preserve the property so that there are no squatters or unauthorised occupants. The fourth respondent shall file an undertaking to that effect with the Registrar of this court that there are presently no such squatters or unauthorised occupants. The property shall be secured by fixing barbed wire fencing all around by the Income-tax Department and the costs so in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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