I-T Dept Asked To Issue Noc To Builders

IN THE SUPREME COURT

The Supreme Court has directed the income-tax authorities to issue no-objection certificates to property developers DLF Universal Ltd, Ansal Properties & Industries Ltd and others in their sale of luxury flats that was caught in litigation.

A large number of writ petitions had been filed before the Delhi High Court challenging the rejection of Form 37-I of the Income-Tax Rules by the "appropriate authority" under the I-T Act.

The high court had set aside the orders of the authority and directed it to take fresh decisions in all the cases of the builders and the buyers. Against that judgment, the authority filed 11 appeals before the Supreme Court. The buyers also joined in.

 

The division bench consisting of Justice D P Wadhwa and Justice Ruma Pal broadly upheld the high court judgment and stated that Form 37-I was in order and they were furnished within the prescribed time.

It was the authority which had failed to pass them within the three months given by the rules. Therefore, the court asked it to issue the no-objection certificates.

The form is part of the measures introduced to check the growth of black money in real estate transactions. Both the builder and the buyer of the property have to file the form declaring the price paid.

This will enable the authority to compare the price paid and the market value, to take further action.

States told to give more water to Delhi

The Supreme Court yesterday directed the Haryana and Punjab governments to release 125 cusecs of water more from the Bhakra-Beas system to Delhi through its canals.

The order was passed on a public interest petition by a bench headed by Justice B N Kirpal.

The order will help Delhi meet the shortage of water till August 31.

Additional-solicitor general Kirit Raval told the court that the Haryana government had refused to carry the water through its canal system though the Delhi government had asked for it. The court directed the Central Water Commission to monitor the flow of water for Delhi and regulate it if there was any danger of breach of canal as feared by the Haryana government.