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Issues:
Acquisition of property under s. 269F(6) based on undervaluation in sale deeds. Analysis: 1. The appeals were filed by three transferees against the order of the IAC (Acq) acquiring 1/3rd undivided share in a property based on alleged understatement of consideration in the sale deeds. The Valuation Officer valued the property at Rs. 1,38,819, while the sale deeds mentioned Rs. 27,000 per transferee. The transferees objected, citing the property's undesirable features and incorrect valuation method used by the Valuation Officer. 2. The transferees argued that the IAC (Acq) did not apply his mind before acquiring the property and that the valuation was excessive. They contended that the property's location near the railway line and other factors made the valuation unreasonable. The Departmental Representative defended the acquisition process, stating that the IAC (Acq) correctly identified the understatement of consideration in the sale deeds. 3. The Tribunal found that the IAC (Acquisition) did not fulfill the conditions under s. 269C before acquiring the property. The Tribunal highlighted that there was no evidence to suggest that the understatement of consideration was with the intent to evade tax liability. The Tribunal concluded that the IAC (Acqn.) lacked jurisdiction to proceed under s. 269C and that the acquisition order was based on a lack of proper application of mind. The Tribunal held the IAC (Acqn.)'s order erroneous and vacated it, allowing the appeals of all three transferees. 4. The appeals filed by two of the transferees were initially late, but the Tribunal condoned the delay after hearing both sides. The Tribunal emphasized the importance of meeting the statutory requirements before initiating acquisition proceedings under the Income Tax Act. This detailed analysis of the judgment highlights the legal issues involved, the arguments presented by the parties, and the Tribunal's reasoning in arriving at its decision to vacate the acquisition order.
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