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Issues Involved:
1. Limitation for Initiation of Proceedings 2. Doctrine of Promissory Estoppel 3. Fair Market Value of the Property 4. True Statement of Consideration 5. Applicability of Section 269C to the Sale Summary: 1. Limitation for Initiation of Proceedings: The respondents contended that the initiation of proceedings was barred by limitation as notice u/s 269D(2) was not served within nine months from the date of sale. The Tribunal upheld this contention, stating that the acquisition proceedings were barred by limitation since the notices were not served within the stipulated time frame. 2. Doctrine of Promissory Estoppel: The respondents argued that the IAC was estopped by the doctrine of promissory estoppel from initiating acquisition proceedings, as it was previously communicated that no acquisition would occur if the property was sold for Rs. 1,05,000. The Tribunal agreed, holding that the IAC was estopped from taking proceedings u/s 269C on the ground of promissory estoppel. 3. Fair Market Value of the Property: The competent authority determined that the fair market value exceeded the apparent consideration by more than 15%, justifying acquisition. However, the Tribunal found that the fair market value did not exceed the apparent consideration of Rs. 1,05,000. The Tribunal's finding was based on the valuation report of June 1977, which estimated the market value at Rs. 92,000, and the condition of the building, which was in poor repair and estimated to last only fifteen years. The High Court agreed with the Tribunal, noting that the lessee had no reversionary interest in the land and that the salvage value argument was not raised before the competent authority or the Tribunal. 4. True Statement of Consideration: The respondents contended that there was no material to hold that the consideration was not truly stated in the instrument of transfer with the object of evading tax liability. The Tribunal upheld this contention, finding no evidence to suggest that the consideration was not truly stated. 5. Applicability of Section 269C to the Sale: The respondents argued that the sale was conducted by the I.T. Department and not by Kasturilal, making s. 269C inapplicable. The Tribunal held that the sale was by private negotiation and not by the I.T. Department, thus s. 269C was not attracted. Additional Points: The High Court addressed the issue of the appeal filed against Kasturilal, who had died before the filing of the appeal. The delay in joining the legal representatives was condoned under s. 5 of the Limitation Act, 1963, as the Department was unaware of Kasturilal's death. The High Court also dismissed the tenants' application for intervention, as they did not appeal to the Tribunal and were not joined as parties in the appeals before the Tribunal. Conclusion: The High Court dismissed all the appeals, upholding the Tribunal's findings on all the issues, and awarded costs to the respondents.
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