TMI Blog1998 (3) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... ather has settled 20.40 cents of land out of the above land to his wife, Mrs. Radha, the mother of the petitioner. The petitioner's mother died leaving behind her husband, five sons, two daughters and three daughters of a deceased daughter as her legal heirs. Thus Mr. Madhavan, the husband of the late Radha, the sons and daughters inherited one-ninth (1/9th) share each and the three daughters of the deceased daughter together inherited one-ninth share in 20.40 cents of land which belonged to the late Mrs. Radha. Shri K.P. Madhavan also settled 7.26 cents of land, and 10.66 cents of land by assignment deeds No. 49 of 1989 and No. 12 of 1987, respectively, to one of' his daughters, Smt. Shalini Ravindran. A portion of the property was acquire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to register the original of exhibit P-1 forthwith and for other incidental reliefs. Heard learned counsel for the petitioner and Shri P. K. R. Menon, learned standing counsel appearing for the Income-tax Department at length. According to the petitioner, rule 30(iii) has been introduced in the Registration Rules (Kerala) to conform with section 230A of the Income-tax Act and section 230A and rule 30(iii) are attracted only when the value of the land purports to transfer, assign, limit or extinguish the right, title of any person to or in any property exceeds the limit prescribed therein and not the value of the entire land, whereas according to the Revenue, going by circular dated December 10, 1992, what is relevant is the valuation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndment of the Income-tax Act mentioned above rule 30(iii) of the Registration Rules (Kerala) was also amended with effect from July 1, 1995, and the same is published in the Gazette dated July 5, 1995-RR4-34540 of 1994. After the amendment the rule reads : "30(iii). Where any document which purports to transfer, assign, limit or extinguish the right, title or interest of any person to or in immovable property other than agricultural land valued at more than five lakhs rupees no registering officer shall register any such document unless accompanied by a certificate from the Income-tax Officer to the effect that : (a) such transferor, assignor, etc., has paid or made satisfactory provision for payment of all existing liabilities under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... production of the income-tax clearance certificate reckoning the whole value of the property sought to be transferred cannot be legally sustained. In my opinion, the very purport of the Act and the rule is to make the value of interest to be transferred the relevant criterion and not the of the property as a whole and a departmental interpretation in the form of a clarification as produced by the Revenue which counter to the statutory mandate cannot be given effect to. The view I am taking is fortified by the following rulings: In Samudrala Ganesh Rao v. State of A. P. [1988] 174 ITR 304, the Andhra Pradesh High Court has considered this question and held as follows : "Section 230A(1) provides that registration cannot be effected unless ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be the value of the property or the interest of the person in such property that was sought to be transferred and it was only with respect to that extent that the income-tax clearance certificate could be insisted upon. As such, in my view, in all these cases before me, neither section 230A of the Income-tax Act, 1961, nor Chapter XXC will apply, especially when an undivided share is sold under a valid sale deed or under a valid agreement of sale as provided in the Transfer of Property Act. This view of mine is supported by the view taken by a single judge of the High Court of Andhra Pradesh which is reported in Samudrala Ganesh Rao v. State of A. P. [1988] 174 ITR 304. In that case, when the valuation of the interest of 3/40th share was on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds of section 230A(1), the criterion should be the value of the property or the interest of the person in such property that is sought to be transferred and not the value of the property as a whole in which such interest of the transferor is sought to be transferred. In view of the above legal position, I have no hesitation in rejecting the contention of learned counsel for respondents Nos. 4 and 5 that it is not the value of the interest of the person transferring the property but the value of the property as a whole in which such interest is sought to be transferred that is the relevant criterion for the purposes of section 230A. For the same reason, it has to be held that the clarification issued by the Central Board of Direct Taxes in i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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