SANJAY CHANDRAKANT RAVAL Vs. UNION OF INDIA

JUDGEMENT

(1.) BOTH these petitions raised a common question. Hence, they are being decided by this common judgment. In Petition No. 1342 of 1994 the petitioner, Sanjay Chandrakant Raval, agreed to sell a parcel of land admeasuring 460 sq. yds. to Manibhadra Association for a consideration of Rs. 16 lakhs as disclosed in the agreement to sell, vide a document dated December 1, 1990. In Petition No. 2238 of 1994, the petitioner, Dr. Chandrakant D. Raval and Mrs. Kumudbala C. Raval, entered into an agreement with Manibhadra Association for sale of 460 sq. yds. of plot for a consideration of Rs. 16 lakhs.

(2.) IN both the cases, on receipt of the statement in Form No. 37 -I, the appropriate authority constituted under Section 269UD of Chapter XX -C of the Income -tax Act, made two separate orders in respect of both the agreements on February 20, 1991, for purchasing the properties specified in the two agreements, by the Central Government in terms of Section 269UD of the Income -tax Act.

(3.) FIRSTLY , it is contended by learned counsel for the petitioners that there cannot be any deduction on account of interest for arriving at the designated value of the apparent consideration as on the date of the agreement for sale, inasmuch as full consideration as stated in the agreement was to be paid to the transferor before the actual transfer was to take place and till then, possession of the property remained with the transferee. Therefore, the question of arriving at a designated value of the apparent consideration as on the date of the agreement for transfer was not at all a relevant consideration.