Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | ncome Tax Act s. 269UD - · Compulsory pre-emptive purchase - Appellant no. 2 obtained land on lease and entered into collaboration agreeuient with a building company to develop and construct a commercial complex on the said land - Builder would retain 78 % of the developed area and transfer 22 % to the share of appellant as consideration - Submission of statement u/s. 269UC by appellant- Issi.Janee of show cause notice by revenue authorities that there was undervaluation of th 1961 - Chapter XXC |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961 - Chapter XXC, s. 269UD —~ Compulsory pre-emptive purchase — Appellant no. 2 obtained land on lease and entered into collaboration agreement with a building company to develop and construct a commercial complex on the said land — Builder would retain 78 % of the developed area and transfer 22 % to the share of appeilant as consideration — Submission of statement u/s. 269UC by appellant — Issuance of show cause notice by revenue authorities that there was undervaluation of the property — Objections by the appellant — Rejection of the objections and order of compulsory pre-emptive purchase under Chapter XXC passed by the Appropriate Authority u/ S. 269UD — Writ petition by appellant challenging the said order— Dismissal by High Court - On appeal, held: Appellant is not an owner.but only a lessee of the land — It could not convey a title which it did not possess itself — No clause in the agreement purports to effect a transfer -— Also in consideration of the licence, the builder agreed that the appellant would have a share of 22% in the constructed area —|t is contemplated that upon construction the builder would retain 78% and the share of appellant would be 22% of the built up area — Thus, the transaction cannot be construed as a Sale, lease ora licence, only possessory rights have been granted fo builder to construct the building on the land -— Authorities erred in holding that the consideration for the subject property was understated in holding that appellant ransferred property to the extent of 78% to builder —- ppellants never stated that the consideration for Rs. 00,40, 000/- was in respect of the built up area but stated hat it was for transfer of the subject land—Also, there was no vidence to conclude that appellant had transferred 78% of he built up area to builder and retained 22% — Objects of the rovision is to prevent evasion of taxes by undervaluation — Thus, no pre-emptive purchase could have been ordered — ligh Court failed to render a finding on the relevance of omparable sale instances - Order passed by the High Court is also the order passed by the appropriate authority u/s. 69UD (1) is set aside. |
Judge | Honble Mr. Justice Sharad Arvind Bobde |
Neutral Citation | 2015 INSC 826 |
Petitioner | Unitech Ltd. &anr. |
Respondent | Union Of India & Anr. |
SCR | [2015] 12 S.C.R. 992 |
Judgement Date | 2015-11-04 |
Case Number | 430 |
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