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Issues:
Determining fair market value of property for acquisition under Income-tax Act, 1961. Analysis: The judgment pertains to an appeal by the Inspecting Assistant Commissioner of Income-tax against the order of the Income-tax Appellate Tribunal. The property in question, owned by a partnership firm, was sold to another partnership firm, triggering an examination under Chapter XX-A of the Income-tax Act, 1961. The Inspecting Assistant Commissioner found the fair market value of the property to be higher than the apparent consideration and directed acquisition. The transferee appealed to the Tribunal, which overturned the decision. The main issue was whether the Tribunal erred in canceling the order based on insufficient evidence. The Tribunal's jurisdiction under section 269G of the Act extends to both questions of fact and law, allowing it to review evidence and reach a different conclusion from the Inspecting Assistant Commissioner. The Tribunal emphasized the burden of proof on the competent authority to establish fair market value in acquisition cases. Despite procedural errors in the Tribunal's approach, the High Court found no legal grounds to overturn its decision. The Inspecting Assistant Commissioner relied on transactions and a valuation report to determine the property's value, while the Tribunal reached a different conclusion based on the evidence. The High Court upheld the Tribunal's decision, stating that there was no error in rejecting the evidence considered by the Inspecting Assistant Commissioner. The Tribunal also found a lack of evidence supporting the acquisition order, leading to its annulment. The High Court emphasized the importance of collecting credible evidence in acquisition cases to withstand appellate scrutiny. It rejected the plea to remit the case for further evidence collection, stating that the Inspecting Assistant Commissioner's failure to gather sufficient evidence should not burden the parties indefinitely. Ultimately, the High Court dismissed the appeal, directing each party to bear its own costs, concluding the legal proceedings related to the property acquisition under the Income-tax Act, 1961.
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