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Issues: Appeal u/s. 269H of the I.T. Act against judgment of the Appellate Tribunal u/s. 269G regarding acquisition proceedings under Chap. XX-A of the I.T. Act based on apparent vs. real value of property transferred.
Analysis: The High Court of Allahabad heard an appeal under section 269H of the Income Tax Act against the decision of the Appellate Tribunal made under section 269G. The case involved the transfer of Property No. 96, Tagore Town, Allahabad, where the apparent consideration was challenged by the Income Tax Officer (ITO) as undervalued. The IAC, Acquisition Range, Lucknow, determined the value of the property to be Rs. 1,78,500 based on the Departmental valuer's assessment. However, the Income-tax Appellate Tribunal, Allahabad, allowed the appeals filed by the transferees, leading to the Commissioner filing connected appeals against this decision. The Department contended that the Tribunal erred in accepting the apparent consideration as the fair market value, especially when the approved valuer appointed by the transferees valued the property at Rs. 1,29,000. The Tribunal's decision was challenged on the grounds that the variance between the apparent value and the valuer's estimate exceeded 25%, rendering the Tribunal's order illegal. The High Court examined whether the Tribunal erred in disregarding the valuer's report and relying on examples and property circumstances to determine the fair market value. The Court emphasized that expert opinions, while admissible, are not binding, and the Tribunal has the authority to assess their reliability. In this case, the Tribunal considered examples provided by the transferees and the property's location, noting its disadvantages such as being in an underdeveloped area with water-logging issues. The Tribunal concluded that the property was not liable for acquisition under Chap. XX-A based on the evidence presented. Ultimately, the High Court upheld the Tribunal's findings as conclusions of fact. It noted that the valuer's report was just one piece of evidence, and the Tribunal thoroughly evaluated all circumstances and evidence before determining that the property was not undervalued. The Court clarified that the determination of property value is a matter of inference from evidence, not a question of law. Therefore, the High Court dismissed the appeals, affirming the Tribunal's decision and ordering costs to be paid.
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