The value of the share of each co-owner has to be taken into account for the purpose of section 269UC of the Income-tax Act, 1961, and not the total value of the shares of the co-owners even when all of them together sell the property and convey the title under one deed.

K.A. Swami, Actg. C.J.

1. This appeal is preferred by the respondents in Writ Petition No. 13984 of 1992 (see above) against the order dated August 5, 1992, passed by the learned single judge.

2. The learned single judge has followed a decision of the High Court of Madras in K. V. Kishore v. Appropriate Authority .

The question for consideration is whether the provisions contained in section 269UC of Chapter XXC of the Income-tax Act, 1961, are applicable to the alienation of the property made under one deed by several co-owners, the value of which exceeds Rs. 10 lakhs but the value of the share of each of the co-owners does not exceed Rs. 10 lakhs.

3. The contention of learned counsel for the appellants is that, as the property is one and it is conveyed under one deed, even though it to owned by several persons, the provisions of Chapter XXC and specially section 269UC of the Income-tax Act are attracted. Section 269UC of the Act which is relevant for our purpose reads thus :

"269UC. (1) Notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882), or in any other law for the time being in force, no transfer of any immovable property of such value exceeding five lakh rupees as may be prescribed shall be effected except after an agreement for transfer is entered into between the person who intends transferring the immovable property (hereinafter referred to as 'the transferor') and the person to whom it is proposed to be transferred (hereinafter referred to as 'the transferee') in accordance with the provisions of sub-section (2) at least three months before the intended date of transfer.

(2) The agreement referred to in sub-section (1) shall be reduced to writing in the form of a statement by each of the parties to such transfer or by any of the parties to such transfer acting on behalf of himself and on behalf of the other parties.

(3) Every statement referred to in sub-section (2) shall, -

(i) be in the prescribed form;

(ii) set forth such particulars as may be prescribed; and

(iii) be verified in the prescribed manner,

and shall be furnished to the appropriate authority in such manner and within such time as may be prescribed, by each 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. Rule 48K of the Income-tax Rules defines the expression "value" thus :

"The value of any immovable property for the purpose of sub-section (1) of section 269UC shall be the apparent consideration of that property exceeding ten lakh rupees."

Though section 269UC of the Act has the effect of overriding the provisions of the Transfer of Property Act or any other law for the time being in force as it opens with the non-obstante clause, this overriding a limited to the purpose stated in that section itself and nothing beyond that. As per the aforesaid provisions, the transfer of an immovable property of value exceeding Rs. 10 lakhs as prescribed by the aforesaid rule 48K cannot at all be effected without furnishing the agreement of sale in writing in the form of a statement as prescribed under sub-section (3) of section 269UC of the Act to the authority concerned by the alienor and the alienee three months before the intended date of transfer.

5. The point for consideration is that when an immovable property owned by several persons is conveyed by all the co-owners together under one sale deed, whether it is the value of the entire property that has to be taken into consideration or the value of the share of each of the co-owners that has to be taken into consideration for the purpose of section 269UC of the Act.

6. Under the general law, a single property can be owned by more than one person and, in that event, each will be a co-owner along with others. Each one will be entitled to sell his share according to his own will and wish. The other co-owners will not be entitled to place any embargo nor is their consent required