TMI Blog2002 (7) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... for this court to come to a different conclusion, where two views are possible, the conclusion of the trial court cannot be set aside in an appeal against acquittal. Since this is an appeal against acquittal, that conclusion of the trial court cannot be set aside and hence, this appeal is liable to be dismissed. - - - - - Dated:- 1-7-2002 - Judge(s) : A. K. RAJAN. JUDGMENT A.K. RAJAN J.-This appeal is against the acquittal. The case of the prosecution is that Appu Hotels Limited, Chennai, was the owner of the lands situate at door No. 1, West Cott Road, Royapettah, in an extent of ten grounds and 1,267 square feet; they purchased the property on April 15, 1987, for a sum of Rs.50 lakhs. The third respondent, Sunil Estates, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e terms of the agreement properly and it has not considered the provisions of section 269UA, clauses (f) and (e) and also sections 269UC and 269C. In support of his contention, he relies upon the decision in Appropriate Authority v. Smt. Varshaben Bharatbhai Shah [2001] 248 ITR 342 (SC), where co-owners entered into a similar agreement of transfer of property agreeing to transfer the definite share of each owner, the Supreme Court held that: "looked at realistically, it was the immovable property which was the subject matter of transfer." Therefore, the property to be transferred is the entire property and where the value of the property exceeds the specified limit, sections 269UA, 269UC and 269UD of the Income-tax Act apply and theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Act. Hence, the acquittal of the accused is not valid and hence, it is liable to be set aside. Counsel for the respondents submitted that there is no transfer of property at all. A transfer of immovable property of value above Rs.100 cannot be made without a registered deed. What is contemplated under the agreement is an agreement to build a construction over the property and to hand it over to the owner of the land. By sale of such proposed constructed area, both the owner of the land and the builder who put up the superstructure will take their respective shares. In so far as the agreement that has been entered into, there is no transfer of any interest in the immovable property. There is no buyer or seller in that agreemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax. It is also provided that no such proceedings shall be initiated unless the competent authority has reason to believe that the fair market value of the property exceeds by more than 15 per cent. the apparent consideration. The entire Chapter XX-C is a single code; section 269UA(f) cannot be read in isolation; it has to be read together with section 269C. The appropriate authority has not stated that this is a transfer for a value which is less than 15 per cent. of the fair market of the property; it is to be seen that the value of the pro perty has not been stated anywhere in the agreement. Therefore, the act of the respondents is not punishable, even if there is "transfer" within the meaning of section 269UA(f) of the Income-tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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