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Issues:
1. Valuation of property for acquisition under Chapter XXA. 2. Adequacy of reasons recorded by the Competent Authority for initiating acquisition proceedings. 3. Competence of the Assistant Valuation Officer in determining property value. 4. Appropriate valuation method for partially built property. 5. Compliance with procedural requirements under Chapter XXA for property acquisition. Detailed Analysis: 1. The judgment by the Appellate Tribunal ITAT Amritsar involved three appeals consolidated due to a common property acquisition issue. The property in question, located at 138, Race Course Road, Amritsar, was jointly held by four individuals who transferred their shares to three transferees. The Assistant Valuation Officer valued the property at Rs. 6,98,800, significantly higher than the aggregate consideration of Rs. 1,61,000 received by the transferees. This valuation led to the initiation of acquisition proceedings under Chapter XXA. 2. The transferees raised objections to the acquisition proceedings, contending that the reasons recorded by the Competent Authority did not meet the legal requirements. The Tribunal found that the reasons lacked specificity regarding the understatement of consideration to facilitate tax avoidance, a prerequisite for initiating acquisition proceedings under Section 269C. As a result, the Tribunal held that the Competent Authority had not lawfully assumed jurisdiction for the acquisition, leading to the direction for the release of the property if already acquired. 3. Another issue raised was the competence of the Assistant Valuation Officer in determining the property value. The transferees argued that the valuation was exaggerated as the property was only partially built at the time of inspection. The Tribunal noted that the valuation should have considered the 1/4th share of each transferee rather than valuing the entire property and then apportioning it. The Departmental Representative, however, defended the valuation method based on the lack of specific identification of portions in the registered deeds. 4. The valuation method for a partially built property was a key point of contention. The transferees argued that the property was not fully constructed at the time of valuation, and the valuation should have considered the construction progress. The Tribunal agreed that valuing the property as a fully constructed building was incorrect, given the ongoing construction work. The valuation should have focused on the 1/4th interest transferred by each individual rather than valuing the property as a whole. 5. Overall, the Tribunal found that the Competent Authority had not met the legal requirements for initiating acquisition proceedings, as the reasons recorded did not establish the intent to facilitate tax avoidance. Consequently, the order of acquisition was deemed invalid, and the Tribunal directed the release of the property if already acquired, ruling in favor of the three appellants in the consolidated appeals.
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