2001 PLP 3395 (PTD)

‑‑‑‑Acquisition of immovable property‑‑‑Transfer of land to four brothers in separate defined shares by single deed‑‑‑Not sale in favour of association of persons‑‑‑Sale of individual plots in favour of each purchaser‑‑‑Acquisition proceedings cannot be taken on basis that there was a single transaction of sale‑‑‑Indian Income Tax Act, 1961, Ss.269C & 269F. A plot of land was transferred by two transferors, who were joint co‑owners, to four brothers in separate defined shares by one sale‑deed. The 'competent authority initiated acquisition proceedings under section 269E of the Income Tax Act, 1961, on the basis that there was one transaction of sale in favour of four brothers as an association of persons; but the Tribunal held that there were four sale transactions reflected in the sale‑deed and the competent authority had to consider the matter of acquisition afresh; and on further appeal the High Court affirmed the decision of the Tribunal. On appeal to the Supreme Court: Held, affirming the decision of the High Court, that the sale transaction could not be held to be a sale in favour of an association of persons but was of individual plots of land in favour of each purchaser. CIT v. T.V. Suresh Chandran (1980) 121 ITR 985 (Ker.) affirmed. T.L. Viswanatha Iyer, Senior Advocate (C. Ramesh and B. Krishna Prasad, Advocates with him) for Appellant. E.M.S. Anam and M.A. Firoz, Advocates for Respondents. These appeals are directed against the judgment of the Kerala High Court (see (1980) 121 ITR 985), dated March 29, 1979, in appeals arising from the order of the Income‑tax Appellate Tribunal (hereinafter referred to as "the Tribunal") in proceedings for acquisition taken under section 269E of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). The property was a plot of land having an area of 16.675 cents which on measurement was found to be 16.268 cents. The said property was transferred by the two transferors who are jointly co‑owners of the said property to four brothers in separate defined shares as prescribed in the sale deed executed on August 17, 1973. The case of the Revenue was that the purchase was made by the four brothers as an association of persons. The Tribunal has, however, not agreed with the view of the competent authority in that regard. The High Court in appeal has affirmed the said judgment of the Tribunal. We have heard Shri T.L. Viswanatha Iyer, learned senior counsel appearing for the appellant, in support of the appeals and we have also perused the impugned judgment of the High Court. We are of the opinion that the High Court has rightly come to the conclusion that the sale transaction in the present case could not be held to be a sale in favour of an association of persons and that the sale was of individual plots in favour of each purchaser. In these circumstances, we do not find any merit in these appeals and the same are accordingly dismissed. No order as to costs. M.B.A./1048/FC Appeals dismissed.