Law:

Section:

Section 269C of the Income-tax Act, 1961 – Acquisition of immovable properties - Proceedings for – Whether a party usually joins in conveyance as confirming party not in capacity of transferor but mainly for purpose of making out good marketable title to property so that in future there might not be any difficulty in conveying or encumbering or in matter of passing title to property by vendor to vendee – Held, yes - Whether in process of formation of its belief under section 269C it would be one of most vital factors for competent authority to consider whether or not transaction was so entered into with object of evading taxes and it is incumbent upon it to record its reasons for arriving at belief – Held, yes Words and phrases – Expressions ‘any proceedings', ‘may' and ‘reason to believe' as occurring in section 269C of the Income-tax Act, 1961 FACTS The competent authority having reasons to believe that the immovable property was transferred by the Life Insurance Corporation of India (LIC) and one ‘H' (a confirming party, to the petitioner) for an apparent consideration much less than the fair market value, issued notice for the acquisition of the said property under section 269D(1). In response, the petitioner submitted (a) that ‘H' being merely a confirming party was not the owner of the land and it could not, therefore, transfer the same to the petitioner and, accordingly, the notice was void ab initio (b) that proceeding ought not to have been taken in respect of a transaction in which a Government organisation was a party; (c) that she had incurred additional expenditure in improvement of the land including construction of the drainage system; and (d) that she was constructing a house on the said land, which was meaning completion. On the aforesaid basis, she filed the writ petition and sought dropping of the acquisition proceedings initiated by the competent authority. HELD As per section 269C, the competent authority would have to form his reason to believe, first that the property concerned which was sought to be transferred had a fair market value exceeding Rs. 25,000; secondly, it had been transferred by the transferor to the transferee for a…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492