 corrigenda to the income- tax (amel~n tid~t) bill, 1981 l-;q bel as introdl'cit' in 10k sabha j1 page 4, line 48,-~ "buildng" ~ "building" 2 page 5,- against line 30, insert the marginal citation -"16 of 1908 ti new delhi; april 22, 198j vaisakha 2, 1903 ( saka)   i bill no 62 of 1981 the income-tax (amendm~nt) bill 1981,a "  '" bill  furtlter to -camend the iftcome-t4:r act, 1961,be ~t enacted by parliament in the thirty-second year of the' republic qf in~ia as follows:-1 (1) this act may be called the income-tax (amendment) short ~, 1981 ' title and commence_ s ' (2) it shall come into force on such date, as the central ment goverumenlmay, by notification in the official gazette appoint 'i, ea of 1"1 ~ z,id section~69a of, t~ income-tax act, 1961 (hereinafter amendr,fetreci· to as theprincipalaet),- ' ment of section ~~ '  ~'(4»)~ cjause ~~)--~': ", " 269a ~ •• " 1  ,  ' "" j ", f ," - " - ~"i' i r , ~~ (i) i~ the o~e~g,~~iipq~ f~t  t~'rords · "apparent consideration", in relation to any immovable property transferred, means,-', thoe tuted, namely:-following shall be substi-- "apparent consideration",-(1) in relation to any immovable property transferred, being immovable property of the , nature referred to in sub-clause (i) of clause (e), means,-'; (ii) after sub-clause (ii), the following shall be inserted, namely:-, (iii) if the transfer is by way of lease,-10 (a) in a case where the consideration for the transfer consists of premium only, the amount of premium as specified in the instrument of transfer; (b) in a case where the consideration for i, the transfer consists of rent only, c,e aggregate of the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the instrument of transfer; io (c) in a case where the consideration for the transfer consists of premium and rent, the aggregate of the amount of the premium, the moneys (if any) payable by way of rent and the amounts for the service or things forming 5 part of or constituting the rent, as specified in the instrument of transfer, and where the whole or any part of the consideration for such transfer is payable on any date or dates falling after the date of such transfer the 30 value of ule consideration payable after such date shall be determined by adopting the rate of interest at eight per cent, per annum; (2) in relation to any immovable property transferred, being immovable property of the 35 nature referred to in sub-clause (ii) of clause (e), means-(i) in a case where the consideration for the transfer consists of a sum of money only, such sum; 40 (ii) in a case where the consideration for the transfer consists of a thing or things only, the price tha~ such thing or things would orcunarily fetch on sale in the open market on the date of the transfer;  5 (iii) in a case where the consideration for the transfer consists of a thing or things and a sum of money, the aggregate of the price that such thing or things would ordinarily fetch on sale in the cqen market on the date of the 50 transfer and such mm, 5 ~d where tile whole, or any part of the consideration for _u,ch tfaj,1~,fer i_pa~a~le o~ ~y date or dates falline after the date of lucb'tradafer, the value ·of l1le ~odatdratiod payable after such date shall be determined by adopting the rate of interest at eight per cent per annum;"; (b) for clause (d), the following clause shall be substituted, namely: _ '(d) "fair market value",-10 - (i) in relation to any immovable property transferred by way of sale or exchange, being immovable property of the nature referred to in subclause (i) of clause (e), means the price that the immovable property would ordinarily fetch on sale in the open market on the date of execution of the instrument of transfer of such property; !;!o (h) in relation to any immovable property transferred by way of lease, being immovable property of the nature referred to in sub-clause (i) of clause (e), means the premium that such transfer would ordinarily fetch in the open market on thp date of execution of th~ instrument of transfer of such property, if the consideration for such transfer had been by way of premium only; (iii) in relation to any immovable property transferred, being immovable c?roperty of the nature referred to in sub-clause (ii) of clause (e), means the consideration in the form of money that such transfer would ordinarily fetch in the open market on the 'date of the transfer, if such transfer had been made only for consideration in money;'; (c) in clause (e),-(i) in the opening portion, for the words' "immovable property" means any land or any building', the fol-35 lowing shah be substituted, namely:-"'immovable property" means,-(i) any land or any building'; (ii) in the explanation, for the words "this clause", the words "this sub-clause" shall be substituted; (iii) the following sub-clause shall be inserted after the explanation, namely:-"(ii) any rights of the nature referred to in clause (b) of sub-section (1) of section 269ab;"; (d) for clause (f), the following clause shall be substituted, namely:  '(f) "instrument of transfer" means the instrument of transfer registered under the registration act, 1908 of 1908 '01', 'as the case nijy' be, the statemen~ tei1ste:ed under -sertton '26tab' with thecotnp-etlrtt anthc;t:1tyi ; (~) 11)r' clsule (k), the followial olauae, ,hall be substituted, na_y;-- (h) "transfer",-s (i) in relation to any immovable pr~perty referred to in sub-clause (i) of clause (e), meads transfer of such property by way of sale or exchange or lease for a term of not less than twelve years, and includes allowing the possession of such 10 property to be taked or retained in part perform  ance of a contract of the nature referred to in section 53a of the transfer of property act, 1882 4 of 1882 explanation-for the purposes of this subclauae, a lease which provides for the extension of r s the tel':m thereof by a further term or terms shall be deemed to be a lease for a term of not less than twelve years if the agrregate of the term f01" which such lellse has been granted add the further term ar terms for which it can be so extended is not 20 less than twelve years; (ii) in relation to any immovable property of the nature referred to in suh-clause (ii) of clause (e), means the doing of anything (whether by way of transfer of shares in a co-operative!25  society or company 01' by way of any agreement or al'l'angement or in any other manner whatsoever) which has the eflect of trans{erring, or enabling the enjoyment of, ,such property: 3 aftm section 269a of the principal act, the followhg 3') section shah be inserted, namely:-insertion of new section 269ab "269ab (1) the following transactions, that is to say,-reji,stration q1~ transaetionl (a) every transllriion iavolving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the 3s nature referred to in section s3a of the transfer of property act, 1882, and 4 of 18f (ib) every transaction (whether by way of becominga member of, or acquiring shares in, a cooperative society, company or other association of 40' persons or by way' of any agre·ement or any arrange~ ment of whatever nature) whereby a person acquires any rights in or with respect to any building or pa"t of a building (whether or not including any machinery', plant, fumiture, fittings or other things the'ein) 45 which has been constructed or which -is to de construeted (-dot behtg· transadlon by way of sale, exclump or lease' of suth hunang or pa"t of a building which is required to be registered under tration act, 1988) j the bells-18 of 1908 aiaall be reduced to writing in the form of a statement by eaeh of tbe parties to such transa,tion or by uy, of the s parties to such transaction acting on behalf of himseu and on bahau of the other parties (2) every statement in respect of a transaction referred to in sub-section (1) shall-(a) be in the prescribed form; 10 (b) set forth s'uch particulars as may be prescribed; and (c) be verified in the prescribed manner, and registered with the competent a'uthority, in such manner and within such time as may be prescribed, by each 15 of the parties to such transaction or by any of the parties to such transaction acting on behalf of himself and on behalf of the other parties" 4 in section 269b of the principal act, in sub-section (2) , the following explanation shall be inserted at the end, name-amendment of section 269b 20 iy:-"exl)tanation-for the purposes of this sub-section, immovable property, being rights of the nature referred to in clause (b) of sub-section (1) of section 269ab in, or with respect to, any building or part of a building which has been constructed or which is to be constructed shall be deemed to be situate at the place where the building has been constructed or is to be constructed" 5 in section 269d of the principal act,-amendment of section 2690 3s (a) in sub-section (1), in the first proviso, after the words and figures "registered under the registration act, 19,)8", the words, figures and letters "or, as the case may be, sedion 269ab" shall be inserted; (b) in sub-section (2) the following explanation shall be inserted at the end namely:-"explanation-the provisions of the explanation to ~ub-section (2) of section 269b shall apply for the purposes of this sub-section as they apply for the purposes of that sub-section" 6 in s~ction 269f of the principal act, in  sub-section (9),-amendment of lection 269f (a) for the words "date of the execution of the instru- ment of transfer", the words, figures and 'letters "date of the execution of the instrument of iransfer' or -where such prope::ty is of the nature referred to in sub-clause (ii) of clause (e) of ~ection 269a on the date of the transfer" shall be substituted; 4s  i(b) for the words "on sale in the open market on the date of the conclusion of the agreement to sell the property", the words "on such on the date of the conclusion of the agr~ement to transfer the property" shall be substituted '  7 in section 2691 of the principal act, after sub1eetion (4), the,following su9-sections shall be inserted, namely:- amendment of mction 2891"(5) notwithstandinganything contained in subsection (4) or any other law or any instrument or any agreement for the time, b~ing in force, where an order for acquisition of any immovable property, being rights of the nature referred to in clause (b) of sub-section (1) of section1269ab, in or with respect to any building or part of a i building which has been constructed or which is to be con· stt"'llcted,has become final, then such order shall, by its own force, have the effect of-(a) vesting such rights in the central government, and (b) placing the central government in the same position in relation to such rights as the person in whom such rights would have continued to vest if suchorder  had not become final, and the competent authority may issue such directions as 20 he may, 4eem fit to any person concerned for taking the ,neceuary steps for compliance with the provisions of 'illauses (a) and (b) (fi) in the case of any immovable property, being rights 25 of the nature referred to in clause (b) of sub-section (1) of section 269ab, in or with respect to any building or part of a building, the provisions of rub-sections (1), (2) and (3) shall have effect as if the references to immovable property therein were a reference to such bunding or, as the case may be, part of such building" 30 8 in section 269j of the' principal act, in sub-section (1), the followinp, proviso shall be insc"rted at the end namely:-amendment of 8fjct1on 2881 "provided that in a case where, under the agreement  between the parties concerned, the whole or any part of the  '(:qmic1erationfor the transfer of such immovable property 35  , is ·paypble on any· date or dates falling after the date on which such property is,acquired, thecompenaation payable by the centra] government shall be the aggregate of the following amounts, namely:-l(il"an,·~n~  gual to ·~thper·  c'l1t::of the 40 "·  ~t,~~tion; (~i) the~~],lnt, if ,~y - that, h8i/~9p1e-rpayable in accordance with such agreem(imt  pd of _be~ore the date on which such property is acquired under this ,'cupter~ and (iii) the amqunt, payable ,tliter the~ date on which such property is acguired under this chapter'i 5 10 t in section 269k of the principal act, in sub-sectiojl (1), aa~ in the proviso, for the words "provided that", the following ment: of shall be substituted, namely: -iiection 28llt "provided that in a casefalli~g under ~ pr0'pso to sub-section (1) of section 269j,' the amounts i-eterreci'to in clause, (i) and clause (ii) of that provi$o shall be tendered to, 'the 'person or persons entitled thereto, ~ soon' ,,'my " be, after the prcqerty becomes ves~d in the central gov~  ernment under section 2691, and'the amount referred to in' clause (iii) of the said proviso shall be tendered on the' date on which it wo'llld be payable in accordajice with "the,' agteement between the parties concerned, and when such amount is payable in instalments on different dates, then in such instalments on those dates: provided further that", 10, after section 276a of the principal act, the followin,  inaertiun section shall be inserted, namely:-of new aeotion 278m 20 "276aa whoever, without reasonable cause or excuse, fails to comply with the provisions of section 269ab 'or with any direction issued under sub-section (5) of section 2691' shall be punishable with rigorous imprisonment for a temiwhich may extend to two years and shall also be liable to fine: failure to comply with the provlsiona of aectio:d 289ab or section 2891 provided' that in the ausence of special and adecauate reasons to the contrary to be recorded in the judgment' of' the court, such imprisoament shall not be for less than tfx' months"  st a'rement of objects and reasonschapter xxa of the income-tax act, 1961 empowers the central government to acquire any immovable property having a fair market val'l1e exceeding rs 25,000 in cases where the consideration declared in the instrument of transfer is less than the fair market value of the property on the date of execution of such instrument these provisions were made in 1972 with a view to countering evasion of tax through understatement of the vaiue of immovable property in sale deeds and to check the circulation of black money the provisions are applicable only in cases of trans,fer of immovable property by way of sale or exchange and do not cover cases of other types of transfer 2 the rill seeks to extend the provisions of chapter xxa of the income-tax act to cover-(i) transfer of flats or premises owned through the medium of co-operative societies and companies; (ii) agreements of sale followed by part performance as visualised in section e'3a of the transfer of property act, 1882: and (iii) long-term leases (viz leases for a period of not less than twelve years) parties to a transfer of the type referred to at (i) and (ii) above will be required to register with the competent authority a statement in the prescribed form giving particulars of such transfer within the prescribed period failure to furnish the prescribed statement in time will render the defaulter liable to punishment with rigorous imprisonment which may extend to two years and also with fine the other provisions are mainly of ancillary or incidental nature 3 the bill seeks to achieve the above objects new delhi; r venkataraman the 21st april, 1981 the bill seeks to extend the provisions of chapter xxa of the income-tax act, 1961 relating to acquisition of immovable properties to counteract evasion of tax to cases of transfer of fiats or premises owned through the medium of co-operative societies or companies and also to cases of long-term leases, vide clause 2 (e) of the bill which seeks to substitute for the definition of "transfer" contained in section 269a(h) of the income-t&x act, a new definition new section 269ab, as proposed to be inserted by clause 3 af the bill in the income-tax act provides for registration of such transactions it will therefore be necessary to augment the existing administrative organization of the income-tax department to some extent 2 the additional expenditure that is likely to be incurred on this account is estimated to be of the fonowing order:-| a                                    | recurting erpenditute per    | year                ||--------------------------------------|-------------------------------|---------------------|| rb                                  | lakhs                         |                     || 425                                 |                               |                     || 1                                   |                               |                     || pay                                  | and allowances                |                     || of                                   |                               |                     || officers                             |                               |                     || n                                   |                               |                     || pay                                  | and                           | allowances of staff || 577                                 |                               |                     || iii                                 |                               |                     || incidental expenses (including class |                               |                     || iv                                   |                               |                     || staff)                               |                               |                     || 121                                 |                               |                     || iv accommodation for offices        |                               |                     || 150                                 |                               |                     || total:                               |                               |                     || 1273                                |                               |                     || b                                   |                               |                     || non-recntring                        | expenditure                   |                     || v                                   |                               |                     || furn~ture,                           |                               |                     || office equipment etc                |                               |                     || 250                                 |                               |                     || total:                               |                               |                     || rs                                  | 1523                         | lakhs               |clause' 3 of the bill seeks to insert a new section 269ab in the incom!-ta,t'act sub-section "(1) of the new section pr0-vides'that the transactions mentioned therein shall beredueed to' wtit1'ng in' the form of a statement sub-section (2) of the new-section confers' powers for prescribing' by iwes' the form in 'wbichsuch statements shall be prepared, the particulars which such statements should contain, the manner in which such' sta~ni'~nts shah be verified and the maiuler in which and the time within which such statements shall be registered'with the:'~omp~tent authority the delegation of legislative power under the aforesaid subsection (2) pertains to matters of procedure or detail and the delet{ation of legislative power is therefore, of a normal character  extracts fltom the in~~me-:!ax, ~ct, 1961(43 of ~961)   -   fmpa in this chapter, unless the context othe,rwise requires,-definitions , ~ ,   : ~ ~: (a) "apparent cons'deration", in relation to any immovable property transferred, means,-(i)  - - (d) "fair market value", in relation to any immovable property transferred, means the price that the immovable property would ardinarily fetch on sale in the open market on the date of execution of the instrument of transfer of such property; •• (e) "immovable property" means any land or any building or part of a building, and includes, where any land or any building or part of a building is transferred to-gether with any machinery, plant, furniture, fittings or other things, such mach1nery, plant, furniture" fittings or other th :n8s also, e~lanation-for the purposes of this clause, land, building, part of a building, lllachinery, plant, ,furniture, fittings and other things include any rights therein; 16 of 1908 (f) "jnstrument of transfer" means the instrument of transfer 'registered under the registration act, 1908;   - -  (n) "tran~fer", in relation to any immovable property, means transfer of such property by way of sale or exchange  2698 (1)                                   -                                           -                                                     - competent authority       (2) in respect of any function to be performed by a com-, petent authority under any provhli9n ,of tj;lis cl;l~p~r in relation ~ apy iixldlovable:jll'operty ret,~red to "in ,_~e~,tion ~9c, the ~c~ent, authority,rf;ferred to th~rein s9~1l,,-                                        '  , "         {t1~ _i~' ~,£~~, ~wper~ -~~h"pi-?pe~~y i~ ai,tude 'within the local limit of tht! jurisdlction '6f only' one c6mpetent au-thority be such competent 'aiithonty;' ','                                                                                  " ~  , ~'      (b) in a case where such property is situate within the locallimitg a1 the'jurisdiction of two or more competent authorities, be the competent authority empowered to per-form such functions in relation to such property in accord~  preliminary notice, ance with rules made in this behalf by the board under section 295, - - - - - 28id (1) the competent authority shall initiate pro::eedings for the acquisition, under this chapter, of any immovable property referred to in section 269c by notice to that effect published in the official gazette: 16 of 1908 provided that no such proceedings shall be initiated in respect of any immovable property after the expiration of a period of nine months from the end of the month in which the instrument of transfer in respect of such property is registered under the registration act, 1906: provided further that-(0) in a case where it is determined under sub-section (4) of section 269b by the competent authority who has initiated proceedings for the acquisition of any immovable property 'under this chapter or by the board that such competent authority has no jurisdiction to initiate such proceedings, the competent authority having jurisdiction may initiate such proceedings within-(i) the period of nine months specified in the foregoing proviso; or (ii) n period of thirty days from the date of such determination, whichever period expires later; (b) in a case where proceedings for the acquisition of any immovable property under this chapter could not be initiated during any period of time by reason of any injunction o'i' order of any court probibiting the initiation of su<::h proceedings or preventing the examination of documents or other materials required to be examined for the purpose i)f determining whether such proceedings should be initiated, the time of the continuance of the injunction or order, the day on which it was issued or made and the day on which it was withdrawn shall be excluded in computing the period during which such proceedings may be initiated under this sub-section (2) the competent authority shall-(a) cause a notice under sub-section (1) in respect of any immovable property to be served on the transferor, the transferee, the person in occ'upation of the property,  if the transferee is not in oecupation thereof, and on every person whom the competent authority knows to be interested in the property;  (b) cause such notice to be published-(i) in his office by affixing a copy thereof to a conspicuous place; (ii) in the locality in which the immovable property to which it relates is situate, by affixing a copy thereof to a conspicuous part of the property and also by making known in such manner as may be prescribed the substance of such notice at convenient places in the said locality,  '" - - - z69f, (1) '" - - hearin, of objections, (9) in any proceedings under this chapter in respect of any immovable property, no objection shall be entertained on the ground that although the apparent consideration for the property is le8s than the fair market vahle of the property on the date of the execution of the instrument of transfer, the consideration as agreed to betwqell the parties has been truly stated in the instrument of transfer because such consideration was agreed to having regard to the price that such property would have ordinarily fetched on sale in the open market on the date of the conclusion of the agreement to sell the property, except where such agreement has been registered under the registration act, 1908, 16 of 1908, '" '" '" '" - 269j (1) where any immovable property is acquired under compensation, this chapter, the central government shall pay for such acquisition compensation which shall be a sum eq'ual to the aggregate of the amount of the agparent consideration for its transfer and fifteen pe-r cent, of the said amount , ~: tt') '" '" - payment or deposit of compensa tion, 269k,' ~ (1) the amo~rit ~f c~m~e~~~tio~:' p;ry~6tj in accordance with the provisions of section 269j for the acquisition of any immovable property shall be tendered to the person or persons f'l1titled thereto, as soon as may be, after the property becomes vested in the central government under sub-section (4) of section 2691: provided that in any case where a reference is or has to be made under sub-setion (2) of section 269j to the court for the determination of the amount by which the compensation payable under sub-section (1) of that section shall be reduced or increased, the amo'un~ of- such compensation as reduced or increased by the amount estimated in that behalf by the competent authority for the purposes of such reference shall be tendered as aforesaid, -  a billfurther to amend the income-tax act, 1961 