RAMESHBHAI J PATEL Vs. UNION OF INDIA

JUDGEMENT

(1.) These are appeals against the judgment and order of a Division Bench of the High Court of Gujarat, delivered on writ petitions. The controversy before us relates to the correct interpretation of Section 269UA(b) of the Income-tax Act, 1961.

(2.) Section 269UA falls within Chapter XX-C of the Act, which deals with the purchase by the Central Government of immovable properties in certain cases of transfer. Section 269UA is the definition section for the purposes of the Chapter. Clause (b) thereof defines 'apparent consideration'. So far as is relevant, 'apparent consideration' means :

(3.) The contention on behalf of the appellants (assessees) was that there can be no discount of the price mentioned in the agreement of transfer and, if there can, the discount must relate to the period between the date of payment of the purchase price by the Central Government and the date of the last payment under the agreement. No argument was, however, advanced in respect of the first contention. The only argument was based on the premise that the discount is made because the transferor is compensated by payment earlier than scheduled under the agreement; and that such compensation is for the period that is saved, that is, between the date of payment by the Central Government and the last date of payment under the agreement.