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TMI Blog2007 (10) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... by the petitioners as to why the sale instances relied upon by the petitioners were not comparable. In the absence of such exercise vis-a-vis the sale instances cited by the petitioners and the valuation report it would not be possible to arrive at a fair market value. In the instant case the fair market value has not been determined. Reliance is also placed on the comparative sale instances. Thus the order also suffers from the vice of non-application of mind. On that count also the impugned order is liable to be set aside. Appeal allowed. - - - - - Dated:- 29-10-2007 - F. I. Rebello J. The petitioners entered into an agreement for sale of Flat No. 1 on the 12th floor of a building known as Enterprise Apartment, Forjett Hill Road, Tarde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appropriate authority passed an order under section 269UD(1) directing purchase of the flat for a consideration of Rs. 12,90,000. It is the case of the petitioners that they were not given an opportunity of being heard nor any reason in support of the order was made available. The petitioners along with the transferor filed a writ petition challenging the validity of the order dated December 12, 1986, as well as the constitutional validity of Chapter XX-C which petition was numbered as Writ Petition No. 3560 of 1993. The petition was admitted and an interim order was granted by this court. The petition was disposed of on December 16, 1992, pursuant to the decision of the Supreme Court in C. B. Gautam v. UOI [1993] 199 ITR 530. The matt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00. The authority came to the conclusion that it was Chapter XX-C that would be attracted. Consequently the competent authority held that the rate of Rs. 1,200 per sq. ft. at which the petitioners had agreed to purchase the property was very low. In respect of the contention urged on behalf of the petitioners that the valuation report prepared by the Revenue should be made available the same was answered by holding that it was not necessary to furnish detailed valuation report obtained in the petitioners case as well as to give material in so far as the sale instances of comparative cases relied upon by the appropriate authority. For the aforesaid reasons the appropriate authority rejected the contention and passed the impugned order. That ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same building was rejected as it was not proximate to the agreement for sale. It is lastly submitted that the fair market value had not been worked out. The fair market value considering the judgment of the Supreme Court in C. B. Gautam s case [1993] 199 ITR 530 had to be worked out, considering that notice can be issued only in the event the sale consideration is 50 per cent. of the fair market value. On the other hand on behalf of the respondents their learned counsel submits that there is no infirmity with the order passed by the appropriate authority. It is submitted that considering the sale instances relied upon it would be apparent that the value was more than the value at which the petitioner had agreed to purchase the flat. At ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st be made available to the petitioners before an order resulting in civil consequences could have been passed. In our opinion in the absence of making available the valuation report and the sale instances there has been failure to comply with the principles of natural justice and fair play and on this ground alone the impugned order is liable to be set aside. We may also consider as to whether the appropriate authority was right in holding that the purchase price between the petitioners and their transferors was below the fair market value. The appropriate authority relied upon three sale instances (1) a flat in building known as Windcliffee at Peddar Road, (2) building known as Ocean Crest at B. D. Road, and (3) building known as Vastu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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