MAHESH KUMAR MODI Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) THIS petition is directed against the order dated September 17, 1991, passed by the appropriate authority - -the Deputy Commissioner of Income -tax.

(2.) THE petitioner entered into an agreement dated July 3, 1991, with respondent No. 3 for the purchase of agricultural land measuring 2,716 sq. yards falling in Khasra No. 641/1, 642/2 situated in the revenue state of Village NebSarai, New Delhi. The total sale consideration of the land was fixed at Rs. 35 lakhs. The petitioner in pursuance of 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.) THE learned Deputy Commissioner of Income -tax (Appropriate Authority) in the impugned order dated September 17, 1991, mentioned that the appropriate authority is of the opinion that the statement of transfer as filed by the parties is not in accordance with the provisions of Chapter XX -C of the Income -tax Act, 1961, because there is no intended transfer of immovable property. In the instant case, the transfer had taken place before the application under Chapter XX -C in Form No. 37 -1 was filed. He further mentionedthat the transferor has defeated the scheme of the Act of enabling the appropriate authority to exercise the option of pre -emptive purchase or issuing of no objection certificate at a stage contemplated by law.