Law:

Section:

Section 269UA, read with section 269UD, of the Income-tax Act, 1961 - Purchase of immovable property by Central Government - Apparent consideration - Whether there are only two relevant dates to be taken into consideration for determining period of discount, namely, (i) date of agreement to sell, and (ii) date when amount is payable - Held, yes - Whether no objection certificate has any relevance either to date of agreement or date when amount is due and payable - Held, no FACTS The assessee, an owner of certain immovable property, entered into an agreement with 'B' for sale of property for a consideration of Rs. 3,23,27,500. The revenue in exercise of the powers vested in it under section 269UD ordered purchase of said property by order dated 13-10-1997 by the Central Government and paid consideration of Rs. 3,14,26,000. A controversy arose regarding the period of the discount for the purpose of deducting the interest from the value of the property shown in the sale agreement. The assessee filed a writ petition and the Single Judge held that the revenue was not correct in determining the discounted value payable to the assessee commencing from the date of the agreement. On writ appeal : HELD The view taken by the Single Judge was not correct in view of the decision of the Supreme Court in Ramesh Bhai J. Patel v. Union of India[2001] 247 ITR 182/ 114 Taxman 236 . [Para 8] There are only two relevant dates to be taken into consideration for determining the period of discount, namely, (i) the date of the agreement to sell, and (ii) the date when the amount is payable. [Para 9] If a third date is introduced, then it would not be possible to calculate the period for which the discount would be considered. The submission of the assessee that the relevant date would be the date on which 'no objection certificate' was granted to the assessee could not be sustained. No objection certificates has no relevance either to the date of the agreement or the date when the amount is due and payable. [Para 10] The writ appeal was allowed. The impugned of Single Judge was set aside. CASE REVIEW Decision of Single Judge in H. Prakashchand Chordia v. Appropriate Authority [2000]…

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