TMI Blog2001 (2) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... firm with whom she had entered into an agreement of sale. The power of attorney was executed after clearance had been obtained for the sale of property under Chapter XX-C of the Income-tax Act. The property remained with the firm, Chettinad Investments, which had taken possession from the petitioner during the year 1993-94. The firm did not choose to obtain a sale deed from the petitioner and have it registered. Instead, the partners of the firm who had obtained power of attorney proceeded to sell the portions of the property on and after March, 1995, to others and those sale deeds were executed by them describing themselves as the agents of the petitioner-assessee. The petitioner in her return for the assessment year 1994-95 reported a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e levied on the income that was assessed and that the interest under those provisions can only be levied on the income declared. Mr. V. Ramachandran, learned senior counsel for the assessee, submitted that the Commissioner has misconstrued section 53A of the Transfer of Property Act, the essential ingredients of which as held by the Supreme Court in the case of Nathulal v. Phoolchand, AIR 1970 SC 546, are-(1) that the transferor has contracted to transfer for consideration any immovable property by writing signed by him or on his behalf from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty ; (2) that the transferee has, in part performance of the contract, taken possession of the property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter XX-C of the Income-tax Act being refused. The certificate sought was in fact granted and no occasion for cancelling the agreement arose. Every one of the ingredients of section 53A of the Transfer of Property Act was therefore satisfied when the firm was put in possession in August, 1993, at which time the assessee had also received the full consideratioi4 of Rs. 25 lakhs. The subsequent act of the firm in selling portions of the property to other third parties, in the subsequent years and executing the sale deeds in favour of such vendees by utilising the powers of attorney granted to the partners by the assessee, does not in any manner militate against the operation of section 53A of the Transfer of Property Act. The petitioner h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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