SAMUDRALA GANESH RAO Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) This is a petition to quash the order dated 21/12/1982, confirming the order dated 9/08/1982, declining to grant registration on the ground that the income-tax clearance certificate has not been produced.

(2.) The sisters of the petitioner released and relinquished their undivided 3/40ths share in favour of the petitioner under a release deed executed on 28/03/1980, on stamp paper of Rs. 30 and the same was presented for registration on 28/03/1980. It is stated that the value of the 3/40ths share released by the three sisters is estimated at Rs. 21,775 on the basis of the wealth-tax assessment. The Sub-Registrar stated that unless the income-tax clearance certificate is produced, the registration cannot be completed.

(3.) The Sub-Registrar, by an order dated 9/08/1982, declined to register the document. Aggrieved by this order, the petitioners filed an appeal before the District Registrar. The appellate authority held that the value of the entire property is the criterion for the purpose of section 230A of the Income-tax Act, 1961, for the value of the interest transferred and, therefore, confirmed the order of the Sub-Registrar. Section 230A (1) of the Income-tax Act reads as follows : "230A (1) : Notwithstanding anything contained in any other law for the time being in force, where any document required to be registered under the provisions of clause (a) to clause (e) of sub-section (1) of section 17 of the Indian Registration Act, 1908 (16 of 1908), purports to transfer, assign, limit, or extinguish the right, title or interest of any person to or in any property valued at more than fifty thousand rupees, no registering officer appointed under that Act shall register any such document, unless the Income-tax Officer certifies that - (a) such person has either paid or made satisfactory provision for payment of all existing liabilities under this Act, the Excess Profits Tax Act, 1940, the Business Profits Tax Act, 1947, the Indian Income-tax Act, 1922, the Wealth-tax Act, 1957, the Expenditure-tax Act, 1957, the Gift-tax Act, 1958, the Super Profits-tax Act, 1963, and the Companies (Profits) Surtax Act, 1964; or (b) the registration of the document will not prejudicially affect the recovery of any existing liability under any of the aforesaid Acts."