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1999 (5) TMI 28 - SC - Income TaxWhether there is transfer of any immovable property under the settlement agreement? Held that:- Mere look at the agreement shows that it is not an agreement for transfer as understood in clause (a) of section 269UA of Chapter XX-C of the Income-tax Act. The settlement agreement also does not stipulate exchange of any immovable property. It rather divides equally businesses and properties between Harendra and Mukesh. It is difficult to appreciate the arguments of Mr. Ganesh as to how in the present case, there is transfer of any immovable property under the settlement agreement. It appears to us that the bone of contention is a flat in Urvashi building in Mumbai which formed part of B+A1 of Mukesh . It was not disputed before us that for this the appellants did execute a gift deed in favour of the respondents on advice received but no steps were taken to complete the transaction as, it appears, relations soured. This would also show that the settlement agreement on the award did not require filing of any declaration under Chapter XX-C of the Income-tax Act. Moreover, in our view in the case of a foreign award, the provisions of Chapter XX-C of the Income-tax Act are not attracted. It was said that under Chapter XX-C a net has been thrown wide to bring within its purview all sorts of immovable properties but that net is not wide enough to cover a foreign award covering businesses and properties both in India and in a foreign country. The apprehension of Mr. Ganesh that if we give this interpretation a method can be found by the parties to escape the rigour of Chapter XX-C knocking at the very provision of law which strikes at the root of black money rampant in the sale and purchase of immovable property. If that is so, the Legislature can always step into block the gap if it finds there is any escapement of revenue. We are also of the view that a foreign award under the Foreign Awards Act does not require registration under the Registration Act. A decree or order of a court does not require registration under clause (b) of sub-section (1) of section 17 of the Registration Act. This is the effect of clause (vi) of sub-section (2) of section 17. Earlier under this clause (vi) before its amendment in 1929 even an award did not require registration. However, after omission of the words "and any award" an award creating or declaring right or interest in immovable property of the value of ₹ 100 would require registration. But then that award would be an award under the Arbitration Act, 1940, and certainly not a foreign award. Appeal dismissed.
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