POLYCON PAPER LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition filed under Article 226 of the constitution of India involves a question about interpretation and applicability of definition of apparent consideration given under section 269ua (b) of the Income tax Act, 1961 ( Act for short) for the purposes of paying the amount to the vendor, when the order for purchase of a property, under Chapter XX-C under section 269ud of the Act is made.

(2.) THE appropriate authority, while giving order for purchase of the property has determined the amount payable for such purchase by applying provisions of section 269ua (b ). In doing so, from the apparent consideration stated in the agreement of sale, the sum payable on stamp duty by the purchaser under the agreement has been deducted. The sole grievance has been made regarding deduction made on account of stamp duty payable by the vendor, as cost of conveyance, while calculating the apparent consideration for the purposes of arriving at payment to be made under section 269uf of the Act. FACTUAL MATRIX

(3.) THE factual matrix lies in narrow compass and it is thus :