JUDGMENT

R.C. Lahoti, J.-Flat No. 201, 2nd Floor, New Jaldarshan, Perry Cross Road, Bandra (West), Bombay was owned by one Hemant Chawla (hereinafter the Transferor , for short). On 1.5.1994 the transferor entered into an agreement to sell the said flat for a consideration of Rs. 45,50,000/- in favour of the six appellants herein (hereinafter referred to as the Transferees , for short). An amount of Rs. 4,55,000/- was paid by the transferees to the transferor on 1.5.1994, i.e. the date of the execution of the agreement. The balance consideration of Rs. 41 lakhs was to be paid on completion of sale within 30 days from the receipt of no objection certificate" from the Appropriate Authority. On 6.5.1994 the transferor and the transferees jointly filed a statement in Form 37-I under Section 269 UC of the Income-tax Act, 1961 (hereinafter the Act , for short). A copy of the agreement was annexed with Form 37-I as statutorily required and as per the proforma the names of the six transferees were mentioned in column No. 4 of Form 37-I.

2. On 12.8.1994 the Appropriate Authority issued notice under Section 269 UD (IA) of the Act to the transferor and the transferees in view of its having