( 1 ) I have had the benefit of reading thedraft judgment prepared by my learned Brother. I am really elatedat the way in which he could put the factual matrix and the lawin a very sweet and exoteric language. My learned Brother hadbeen unique in this respect. I have always been admiring at hisgift of the gup. I derived immense solace and comfort while working with him. He provoked my thinking and prompted me to proceed on a light track which enabled me to have hang of the matters. I am spell bound, as it were, and I am in entire agreement withwhat all he has said. I now proceed to express my views in thefan Indian fashion.

( 2 ) ALL law is an experiment as all life is an experiment, as stated by Justice Holmes of the United States of America. The Government of India made an experiment by introducing Chapter XX-Cin the Income-tax Act, 1961 w. e. f. 1986 but the Supreme Courtin C. B. Gautam s case held, that no doubt the Government couldmake an experiment but within the parameters of the Constitution. Apparently, keeping in mind the principles that there should not beunending. conflict or strife or competition between the Governmentand the citizens in the field of taxation the Supreme Court laid downthe law clearly. The attempt of the revenue to garner resources, tomop up the deficiency in the budget by collecting revenue throughtax laws has been subject matter of decisions for a long time. Itwould be scarcely relevant to trace the history of direct taxationin India except to note that there were some acts from 1860 onwards and in the year 1886 there was some Act and the completecodification of the law covering the entire territory of India was notthere and the native states were having their own laws. For thefirst time in 1922 the British Government enacted the Indian Income-tax Act, 1922 to collect revenue. There were loopholes and thecitizens always tried to find out some means to get round the lawand the Courts were to resolve the disputes.

( 3 ) IN view of the present economic scenario, the resources crunchis always pressing the Government to amend the tax laws, now andthen, to increase the collection of the revenue. Every year thegovernment tries to bring about legislation for amending the taxlaws and they are always challenged.

( 4 ) BEING not satisfied with existing machinery, the Parliamentintroduced in the Income Tax Act, 1961 Chapter XX-A by thetaxation Laws Amendment Act, 1972 which came into force onthe 15th of November 1972. In 1986 the Parliament introducedchapter XX-C :-

"purchase by Central Government of Immovable propertiesin certain cases of transfer. "the object of the Bill is to give effect to the Financial Proposalsof the Central Government of India for the financial year 1986-87. The notes on clauses explained the various provisions contained inthe Bill. Clause 33 of the Bill reads as follows :-

"clause 33 of the Bill seeks to amend section 269c of theact relating to immovable property in respect of whichproceedings for acquisition may be taken. "under the existing provisions, where a competent authorityhas reason to believe that any immovable property ofa fair market value exceeding one hundred thousandrupees has been transferred by a person to anotherperson for an apparent consideration which is less thanthe fair market value of the property and that the consideration for such transfer as agreed to between theparties has not been truly stated in the instrument oftransfer, the competent authority may initiate proceedings for the acquisition of such property. Under the proposed amendment, it is provided that no suchproceedings shall be initiated in respect of propertiestransferred after the 30/09/1986. This amendment will take effect from 1/10/1986. "clause 34 reads as under :-

"clause 34 seeks to insert a new Chapter XX-C in theincome-tax Act, 1961 enabling the Central Governmentto purchase immovable properties in certain cases oftransfer. This chapter contains 16 sections from section 26