Compliance with mandatory provisions of the Income Tax Act, even in the absence of existing liability, is required in certain transactions.

( 1 ) THE Court : This application is directed against the order dated 18th October, 1995 whereby and whereunder the petitioner was asked to obtain certificates from the Income Tax Authorities under Section 230a (1) of the Income Tax Act.

( 2 ) THE fact of the matter lies in a very narrow compass.

( 3 ) THE petitioner No. l is said to be owner of 7/8th share and the petitioner No. 2 is the owner of 1/8th share of the property in question. A decision was taken by the trustees of the said Trust to sale the said properly, in favour of M/s. CMC Limited at a price of Rs. 3. 10 crores. An application was filed by the trustees under the provisions of Indian Trust Act, 1882 as well as Charitable and Religious Act, 1920 in this Court. By an order dated 3rd August, 1995 a learned single judge of this court allowed the said application in terms of prayers of A, B, C and D thereof. The petitioner thereafter filed the assurance for registration. The Registrar informed the trustees that in view of the order of this court, the valuation of the properties in question for the purpose of registration would be accepted but he insisted that a certificate in terms of section 230a (1) be produced. The learned Counsel appearing on behalf of the petitioner has raised a short question in support of this application. The learned Counsel submits that the petitioner No. I -Trust is exempted from payment of Income Tax and thus no Income Tax certificate is required to be produced. So far as the petitioner No. 2 is concerned, it was submitted that the sole beneficiary of the said Trust is Smt. Arati Mullick and thus there is no existing liability in respect of demand under any of the Act as specified under section 230a of the Income Tax Act. The learned Counsel submits that keeping in view the fact that the sale is an involuntary sale, the provision of section 230a has no application to the facts and circumstances of this case.

( 4 ) THE learned Counsel appearing on behalf of the respondents however, submits that this court in its Judgment did not exempt the petitioner from filing the no objection certificates by the Income Tax Officers.

( 5 ) THE only question which, therefore, arises for consideration in this application is as to whether the sale in question is a voluntary sale.

( 6 ) IT has not been disputed that the trustees took a decision for transferring the properties. It is also not in dispute that the offer of M/s. C. M. C. limited which is said to be the highest offer was accepted. The petitioner filed an application before this court only in terms of the provision of the Trust Act and Charitable and Religious Trust Act, 1920 for obtaining its permission in respect of the said transaction.

( 7 ) THIS court merely granted such permission. The sale in question, therefore, is not an involuntary sale. It is not disputed that Section 230a of the Income Tax Act does not apply to involuntary sales.

( 8 ) HOWEVER, in view my findings aforementioned I am of the opinion, that the petitioners are require to comply with the provision of section 230a (1) of the said Act.

( 9 ) IT may be true that the petitioners do not have any existing liability but the Registrar in view of mandatory provisions contained in section 230a (1) of the Act cannot dispense with the requirements thereof. However, it appears that the petitioner would he loosing a huge amount if such certificates are not granted at an early date.

( 10 ) IN this view of the matter this application is disposed of with the following directions :1. THE petitioner may file an application for grant of such certificates before the competent authorities who are directed to consider the same and pass an appropriate order within 3 days from the date of filing of such application. The petitioner shall produce all materials in respect of their claim before the concerned Income Tax Officer if so required. 2. THE Registrar shall register the instrument forthwith upon satisfying himself tha