Law:

Section:

Section 269UC of the Income-tax Act, 1961 - Purchase of immovable properties by Central Government in certain cases - Petitioners entered into an agreement to sell immovable property for a consideration of Rs. 60 lakhs and filed statement in Form No. 37-1 before appropriate authority - Appropriate authority held that statement in Form No. 37-1 was not valid, because petitioners had no transferable title - Whether appropriate authority had jurisdiction to enquire into title of transferor - Held, no FACTS The petitioners, the owners of an immovable property entered into an agreement in 1980 with G to sell the property for a consideration of Rs. 12.5 lakhs. The parties did not take any further steps in pursuance of the agreement. In October 1990 the petitioners entered into a fresh agreement with another party for sale of the property for a consideration of Rs. 60 lakhs and in accordance with the requirement of section 269UC filed the requisite statement in respect of the proposed transfer before the appropriate authority. In December 1990 appropriate authority communicated to the petitioners that the petitioners did not have transferable title to transfer the immovable property in favour of respondent No. 4 as the earlier agreement of 1980 with G had not been cancelled as yet and the general power of attorney issued in favour of G was still in operation, and hence Form No. 37-1 could not be treated as valid. The petitioners challenged the legality of the order passed by the appropriate authority. HELD The provisions of Chapter XX-C confer powers upon the appropriate authority on filing of the statement by the transferor and the transferee only to determine whether the property agreed to be transferred should be purchased by the Central Government at an amount equal to apparent consideration. It is neither the function nor the jurisdiction of the appropriate authority to examine whether the transferor has any transferable interest in the property proposed to be transferred. The appropriate authority is not conferred with jurisdiction to determine rights of the title to the property. In case the appropriate authority determines that the property should be purchased…

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