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Issues:
Valuation of property in sale agreement seized under section 132 - Discrepancy in sale price - Validity of Tribunal's decision to disregard sale price in agreement and accept Inspector's valuation - Legal basis for valuation - Acceptance of Inspector's valuation by assessee - Circumstances affecting property value - Admissibility of inflated sale consideration - Proof of payment of sale consideration - Comparison of sale agreement and sale deed prices - Legal sustainability of Tribunal's decision. Analysis: The case involved a dispute over the valuation of a property based on a sale agreement seized under section 132. The assessee entered into an agreement to purchase land with an incomplete cinema theatre structure for Rs. 2,07,000, but the sale deed was registered for only Rs. 40,000. The assessing authority added Rs. 1,67,000 to the income, which was later reduced to Rs. 36,000 by the Tribunal, based on an Inspector's valuation of Rs. 76,000 accepted by the assessee. The Revenue contended that the Tribunal erred in accepting the Inspector's valuation without a legal basis and disregarding the agreed sale price in the agreement. They argued that the circumstances, including the vendor's financial difficulties, did not justify the inflated sale price. The Revenue highlighted discrepancies between the sale agreement and the sale deed prices, questioning the acceptance of a value between the two. The assessee defended the Inspector's valuation, stating that the acceptance was to resolve the issue. They argued that the incomplete structure's sentimental value could justify a lower sale price. The assessee claimed that the circumstances of the vendor compelled the lower sale price, and no evidence discrediting the sale agreement's price was presented. The Court analyzed the evidence, emphasizing the lack of proof regarding the inflated sale consideration and the payment of the sale price. The Court found the Inspector's valuation lacked a legal basis and that the Tribunal erred in accepting it. The Court concluded that the sale agreement price was the correct value paid by the assessee, setting aside the Tribunal's decision and restoring the Assessing Officer's order. The Court distinguished previous judgments cited by the assessee, stating that the present case lacked evidence of inflated sale consideration for obtaining a loan. Ultimately, the Court ruled in favor of the Revenue, rejecting the assessee's arguments and setting aside the Tribunal's decision. In conclusion, the Court held that the Tribunal's decision was not legally sustainable, ruling against the assessee and in favor of the Revenue.
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