COMMISSIONER OF INCOME TAX Vs. KALAVATHY

JUDGEMENT

(1.) THE appeal in Tax Case No. 1150 of 1991 is preferred by the Revenue against the order of the Income-tax Appellate Tribunal, Madras Bench "C", dated May 31, 1998 in Income-tax (Acquisition) Appeal No. 14 (Mds) of 1998.

(2.) THE respondent herein is one of the transferees of the properties situated in No. 301/302, Mowbrays Road, Chennai. THE transfer of the said property was effected by an instrument of transfer dated April 24, 1985, in favour of five transferees and one of the transferees is the respondent herein in the appeal.

(3.) WE have carefully considered the submissions of learned senior standing counsel for the Revenue and the learned counsel for the respondent. Chapter XX-A of the Act, was introduced in Parliament on August 12, 1971, by the Taxation Laws (Amendment) Bill of 1971 on the basis of the recommendations of the Direct Taxes Enquiry Committee recommending certain measures to unearth the black money and prevention of tax evasion. Under Chapter XX-A of the Act, the Revenue was empowered to acquire such properties which were transferred at grossly understated consideration and resulting in the forfeiture of the property with the payment of the apparent consideration and also 15 per cent. of the apparent consideration in the nature of solatium.