Bharucha, J. - (1.) These are appeals against the judgment and order of a Division Bench of the High Court of Gujarat, delivered on writ petitions. The controversy before us relates to the correct interpretation of Section 269UA(b) of the Income-tax Act, 1961.
(2.) Section 269UA falls within Chapter XX-C of the Act, which deals with the purchase by the Central Government of immovable properties in certain cases of transfer. Section 269UA is the definition section for the purposes of the Chapter. Clause (b) thereof defines 'apparent consideration'. So far as is relevant, 'apparent consideration' means : "(1) in relation to any immovable property in respect of which an agreement for transfer is made, being immovable property of the nature referred to in sub-clause (i) of clause (d), means,- (i) if the immovable property is to be transferred by way of sale, the consideration for such transfer as specified in the agreement or transfer; (ii) to (iii) ********** and where the whole or any part of the consideration for such transfer is payable on any date or dates falling after the date of such agreement for transfer, the value of the consideration payable after such date shall be deemed to be the discounted value of such consideration, as on the date of such agreement for transfer, determined by adopting such rate of interest as may be prescribed in this behalf; ********** " The rate of interest in this behalf is prescribed by Rule 48(i) of the Income-tax Rules and it is eight per cent per annum.
(3.) The contention on behalf of the appellants (assessees) was that there can be no discount of the price mentioned in the agreement of transfer and, if there can, the discount must relate to the period between the date of payment of the purchase price by the Central Government and the date of the last payment under the agreement. No argument was, however, advanced in respect of the first contention. The only argument was based on the premise that the discount is made because the transferor is compensated by payment earlier than scheduled under the agreement; and that such compensation is for the period that is saved, that is, between the date of payment by the Central Government and the last date of payment under the agreement.;