( 1 ). The question involved in these two writ petitions pertains to the scope of Chapter XX-A and Chapter XX-C of the Income Tax Act, 1961. The petitioner in C. W. P. 2822/1986isreferred hereinafter as "sunshinetravels" and the petitioner in the writ petition No-2777/1986 is referred hereinafter as "p. P. Singh".

( 2 ). Sunshine Travels entered into an agreement on 30. 4. 1986, with Anil Vasudeva and others. Anil Vasudeva and others were the co-owners of the property in question. They were constructing a residential building on the said property. They are referred as "sellers". Sellers agreed to sell a portion of the building to the purchaser Sunshine Travels. The consideration shall have to be paid in the manner stated in the agreement out of which a sum of Rs. 50,000/ - had already been paid under 4 cheques. The stages in which the balance shall have to be paid are narrated in the agreement. The following clause is quite relevant:-

"that under no circumstances, whatsoever, the possession of any portion of the building herein agreed to be acquired by the Purchaser shall be given by the Seller until and unless all payments required to be made in terms of this agreement alongwith any interest have been fully made to the Sellers. "various other clauses as to how the building shall have to be maintained, how the taxes are to be paid, how the increased burden shall have to be borne by the parties are not necessary for us to consider. However, clause 15 of the agreement stated that the portion of the building agreed to be acquired by Sunshine Travels shall betransferred in their favour or in favour of their nominee within aperiod of 3 years from the date of the agreement on payment of the balance sum of Rs. 1 lac agreed to be paid to the sellers under the agreement at the time of transfer.

( 3 ). According to the Revenue the transfer of the building in favour of Sunshine Travels could take place only when this clause is satisfied, in other words when the entire amount is paid and the sale deed is registered.

( 4 ). On 1. 5. 1986 Form 37-EE under Section 269 AB (2) of the Act was filed. This was under Chapter XX-A. On 1. 10. 1986 Chapter XX-C was brought into force in Delhi. On the basis of the New Chapter XX-C, an order was made on 15. 12. 1986 acquiring the property in question. The petitioner immediately approached this court by filing the present writ petition on 24. 12. 1986. Petitioner questioned the validity of the relevant provisions of Chapter XX-C. Petitioner also sought the quashing of the order dated 15. 2. 1986 made under Chapter XX-C. Petitioner also sought the quashing of Rule 48l of the Income Tax Rules because it purports to making the provisions retrospective even though the Act (Chapter XX-C) did not declare its provisions retrospective.

( 5 ). The validity of Chapter XX-C has been substantially up-held by the Supreme Court in C. B. Gautam s case (199 ITR 530 ). Therefore, the petitioner confined the arguments as to the application of the provisions of Chapter XX-C to the transaction in question. The petitioner contended that Chapter XX-C was not retrospective and did not apply to the agreements entered into prior to the date of its application to an area. Since the relevant agreement involved in the writ petition was entered into on 30. 4. 1986, the transaction would come within the provisions of Chapter XX-A of the Act.

( 6 ). Before considering the question of law it is necessary to note the effect of the agreement dated 30. 4. 1986. The sellers/owners agreed to sell a portion of the building put up by them to the petitioner Sunshine Travels. The sale consideration shall have to be paid on various dates. However, the purchaser shall be entitled to have the building transferred in favour of the purchaser on payment of the entire sale consideration. This transfer referred in clause 15 is the transfer as normally under stood for the purpose of registration i. e. to say a transfer effected