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Issues:
1. Determination of fair market value for property acquisition under section 269C of the Income-tax Act, 1961. 2. Sufficiency of material before competent authority to initiate acquisition proceedings. 3. Compliance with mandatory provisions of section 269D of the Act. Detailed Analysis: 1. The judgment concerns Income-tax Appeals arising from the acquisition of property by five individuals at an apparent consideration of Rs. 93,000, with the Valuation Officer determining the fair market value at Rs. 1,62,000 based on the market rate of Rs. 120 per square yard. The competent authority initiated acquisition proceedings under section 269C of the Act as the fair market value exceeded the apparent consideration by more than 15%. The Tribunal, however, found the authority lacked sufficient material to initiate proceedings, as the Valuation Officer's report did not properly determine the fair market value, leading to the order of acquisition being set aside. 2. The Tribunal concluded that the competent authority's decision to initiate acquisition was not supported by substantial evidence, as the Valuation Officer's report was vague and lacked details on how the market rate was determined. The authority's rush to make a decision, without clear and cogent material, indicated a lack of proper basis for initiating the acquisition proceedings under section 269C(1) of the Act. Consequently, the Tribunal's decision to set aside the acquisition order was upheld by the High Court. 3. While the issue of compliance with the mandatory provisions of section 269D of the Act was raised by the transferees before the Tribunal, the High Court did not delve into this aspect due to the primary finding regarding the insufficiency of material for initiating the acquisition proceedings. The Court dismissed the appeals filed by the Revenue under section 269H of the Act, upholding the Tribunal's decision and imposing costs on the appellants.
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