2003 (8) TMI 21 - HC - Income Tax

Property under acquisition has been released by the Tribunal - Tribunal has returned a finding that examination of records would reveal that the competent authority recorded its satisfaction in view of the provisions contained in sections 269C and 269F(6) of the Act of 1961, yet, there was no specific order for the acquisition of the property under consideration. Held that order for release of the property by the Tribunal was valid there is no merit in the appeal, the same is dismissed

Summary

Issues:
1. Appeal under section 269H of the Income-tax Act, 1961 against the order of the Income-tax Appellate Tribunal.
2. Determination of fair market value by the Government Valuation Officer.
3. Challenge to the order of the Deputy Commissioner of Income-tax based on the report of the GVO.
4. Basis of valuation and dropping of proceedings in related cases.
5. Compliance with provisions of sections 269C and 269F(6) of the Income-tax Act, 1961.

Analysis:
1. The judgment involves the disposal of six connected income-tax appeals under section 269H of the Income-tax Act, 1961. The appeal was filed against the order of the Income-tax Appellate Tribunal, which released the property under acquisition. The property in question was transferred for an apparent consideration of Rs. 46,80,906, but the fair market value determined by the Government Valuation Officer was Rs. 83,83,200, leading to the initiation of proceedings under section 269D(i) of the Act.

2. The Deputy Commissioner of Income-tax, based on the GVO's report, found that the fair market value exceeded the apparent consideration by more than fifteen percent and that the consideration for the transfer was not truly stated in the instrument of transfer. The Tribunal allowed the appeal, emphasizing that the case could not be solely based on the GVO's report. The Tribunal highlighted discrepancies in the valuation and the lack of a specific acquisition order for the property.

3. The Deputy Commissioner's order was challenged on the grounds that the valuation was based on dropped proceedings in related cases, which undermined the basis of the impugned order. Despite arguments presented, the Tribunal found no illegality in the order and dismissed the appeal, with each party bearing their own costs. The judgment underscores the importance of complying with the provisions of the Income-tax Act, specifically sections 269C and 269F(6), in determining fair market value and conducting acquisition proceedings.

This detailed analysis of the judgment provides insights into the legal complexities and considerations involved in the disposal of income-tax appeals related to property acquisition and valuation under the Income-tax Act, 1961.