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TMI Blog1979 (10) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... Registration, Madras, the second respondent, dated January 5, 1976, and W.P. No. 832 of 1976, being for the issue of a writ of mandamus or any other appropriate direction or order directing the Second ITO, City Circle, II(2), Madras-34, the fourth respondent and the Commissioner of Income-tax, III Circle, Madras-34, the fifth respondent, to issue an I.T. Clearance Certificate under s. 230A of the I.T. Act, 1961, in relation to the third respondent in respect of income-tax and other taxes specified in this section for registering the document dated March 3, 1974, executed by the third respondent in favour of the petitioner and the seventh respondent which has been presented for compulsory registration by the petitioner before the first resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Certificate on the ground that s. 230A does not apply to involuntary transfers. Proceeding on the basis that the document dated March 3, 1974, is an involuntary document, she produced the copy of the judgment in C. S. Loganathan v. P. L.Kapur [1972] 83 ITR 430 (Delhi), along with the application. The first respondent passed the impugned order dated November 26, 1975, declining to dispense with the I.T. Clearance .Certificate. Thereafter" the petitioner filed an application for appropriate relief before the second respondent, the Inspector General of Registration ; but by his order dated January 5, 1976, he held that the I.T. Clearance Certificate was necessary and that the petitioner could seek redress in court of law, if so advised. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refused to be accepted by the ITO. Respondents Nos. 4 and 5 further contend that even if the petitioner had presented such an application, no certificate could be granted to the petitioner on the ground that the fourth respondent has no jurisdiction to grant it, having regard to the provisions of s. 230A(2) of the I.T. Act, 1961, under which the application for the issue of an I.T. Clearance Certificate has to be made by the person referred to in sub-s. (1) of s. 230A and the petitioner was not the person, contemplated by s. 230A(1) and (2), to apply for and obtain a certificate and, also because, the third respondent objected by his letters dated May 17, 1975, and June 11, 1975, to the issuance of the certificate to the petitioner. Respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection and shall be in such form and shall contain such particulars as may be prescribed. (3) The provisions of sub-section (1) shall not apply in a case where the person referred to in that sub-section is any such institution, association or body, or belongs to any such class of institutions, associations or bodies, as the Board may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette." Admittedly, the properties in respect of which the settlement deed dated March 3, 1974, had been executed by the third respondent in favour of the petitioner and her sister, the seventh respondent, are valued at more than Rs. 50,000. Therefore, the first respondent Registering Officer was well within his rights in insistin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be nothing on record to show that the petitioner presented an application on May 31, 1975, before the fourth respondent for the issuance of a certificate relating to the third respondent. It is admitted by respondents Nos. 4 and 5 in the counter-affidavits that the third respondent was riot even an income-tax assessee. Therefore, there could not have been any arrears of tax as mentioned in s. 230A(1)(a) of the Act. This is also admitted before me. The document dated March 3, 1974, had no doubt been executed by the third respondent in respect of his properties valued at more than Rs. 50,000. Sub-section (2) of s. 230A of the Act no doubt says that the application for the certificate required under sub-s (1) shall be made by the person re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest in properties valued at more than fifty thousand rupees, the I.T. Dept. cannot, in my opinion, decline to issue a certificate in favour of the petitioner on the ground that the third respondent had objected to the same with the object of defeating the rights claimed by the petitioner under the document and also because the seventh respondent appears to have objected to the issuance of the certificate in favour of the petitioner. When the I.T. Dept. finds that the third respondent was not even an income-tax assessee and no arrears of any of the taxes mentioned in cl. (a) of s. 230A(1) of the Act was due from the third respondent, the I.T. Dept. should have issued a certificate to the petitioner after taking an overall picture of the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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