Proceedings u/s 269E(1) of Income Tax Act, 1961. - Income Tax - 1507/CBDT

INSTRUCTION NO. 1507/CBDT Dated: April 7, 1983 Section(s) Referred: 269E(1) Statute: Income - Tax Act, 1961 This has come to the notice of the Board that in a number of cases the proceedings initiated under section 269E(1) were later on dropped by the IACs (Acq.) without recording any reasons for dropping the acquisition proceedings. In some of these cases the fair market value of the property as determined by the Valuation Cell happen to be more than 15% of the apparent consideration. The Receipt Audit has taken an objection against such action on part of IACs. (Acq.). 2.Board desires that while dropping the proceedings of acquisition once validly initiated under the provisions of chapter XXA of IT Act, 1961, the IACs (Acq.) should record in detail their reasons for arriving at conclusion that the proceedings of acquisition should not be further continued and the orders under section 269F(6) should not be passed. Further more, in cases where the difference between the fair market value as determined by the Valuation Cell exceeds the apparent consideration by more than 15% of the apparent consideration, they should specifically record in sufficient details the reasons for not adopting the valuation as per the Valuation Cell in cases where the proceedings are dropped on the ground that the difference between the fair market value and the apparent consideration does not exceed 15% of the apparent consideration. These instructions need to be observed strictly and any lapse in this regard would be viewed adversely. 3. You are requested to bring these instructions to the notice of all Assistant Commissioners in your charge.