MULTI RISE TOWERS P LTD Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) The issue involved in this writ application is whether the provisions of Chapter XX-A of the Income-tax Act, 1961 (referred to as "the Act"), or Chapter XX-C of the said Act would apply to the transaction entered into between the petitioner and the owners of the premises No. 16, Raja Santosh Road, Calcutta (referred to as "the premises").

(2.) On September 1, 1986, and September 15, 1986, two several agreements were entered into by Surajit Ganguli and Ratna Ganguli, respectively, in respect of their undivided half share in the premises with the petitioner. Under each of the agreements, the owners agreed to sell and transfer their undivided share or interest in the premises to the petitioner or its nominee or nominees free from all encumbrances and charges at and for an amount of Rs. 61 lakhs each. The agreements record that a sum of Rs. 10 lakhs had been paid by the petitioner to each of the owners as and by way of earnest money and in part payment of the agreed price.

(3.) Chapter XX-A deals with the acquisition of immovable property in certain cases of transfer to counteract evasion of tax. On September 19, 1986, the petitioner submitted two statements in Form No. 37EE under Section 269AB(2) of the Act to the competent authority under Chapter XX-A of the Act. The statements set out particulars of the transaction. Against the entry 7(i) : Whether the transfer of property involves transaction of the nature referred to in Section 269AB(1)(b)--(i) the nature of the act having the effect of transferring or enabling the enjoyment of a property : in one it was mentioned "The agreement for sale dated September 1, 1986" and in the other "The agreement for sale dated September 15, 1986". On September 26, 1986, the statements in Form No. 37EE were registered with the competent authority.