M K MODI Vs. APROPRIATE AUTHORITY

JUDGEMENT

(1.) This petition is directed against the order dated 17.9.1991 passed by the appropriate authority - the Deputy Commissioner of Income Tax.

(2.) The petitioner entered into an agreement dated 3.7.1991 with respondent No.3 for the purchase of agricultural land measuring 2716 sq. yards falling in Khasra No.641/1, 642/2 situated in the revenue state of Village Neb Sarai, New Delhi. The total sale consideration of the land was fixed at Rs.35 lakhs. The petitioner in pursuance to the agreement performed his part of the contract and paid the entire consideration to respondent No.3 as per the terms of the agreement and respondent No.3 handed over the vacant and physical possession of the plot to the petitioner.

(3.) Since the sale consideration was more than Rs.10 lakhs at the relevant time, the provisions of Chapter XX-C of the Income-tax Act were attracted and the parties before getting the sale deed registered were required to submit an application under Chapter XX-C in Form 37-I of the Income-tax Act within 15 days of the execution of the said agreement. Admittedly the Form 37-I was filed on 10th April, 1991 after the physical possession was handed over to the petitioner. According to the provisions of Section 269 UC of the Act the form under Section 37-I had to be filed within three months before the intended date of transfer. Section 269 UC of the Act reads as under: