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TMI Blog2001 (8) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... e court was delivered by S. RAJENDRA BABU J.-The property comprised in No. G-4 (Old No. C-62), Maharani Bagh, New Delhi, on a plot measuring about 800 sq. yards was agreed to be sold pursuant to an agreement dated July 1, 1993, for a sale consideration of Rs. 79 lakhs. The property consists of two floors-ground and the first-and is in occupation of the tenants. The agreement provided for symbolic delivery of the possession while it was open to the purchaser to make use of the portion over the roof on the first floor. An application in Form No. 37-1 was filed on July 9, 1993. The appropriate authority worked out the fair market value of the property and the apparent consideration fell short by 24 per cent. of the fair market value. The appro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al. The reasons set forth by the appropriate authority are as follows,: Subject property Ist sale instance Sale agreement 97-93 Apparent sale consideration Declared land rate works out at Rs. 21,821 per sq. mt. Value to be increased at 1 per cent. per month for 24 months 24 per cent. Sale deed dated 25.6.91, 24 months earlier sale agreement. Has no basement 10 per cent. to be deducted Thus value to be added is 14 per cent. (24 per cent.10 per cent.) If 14 per cent. is added the land rate of subject property would come to Rs. 21,821 x 14 per cent. Rs. 24,875 or Rs. 25,000 per sq. mt. Value of land Rs. 1.30 crores Depreciated value of the structure Rs. 9,35,758 Total value of the subject property Rs. 1,39,33,758 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,21,655 Barsati potential 148.90 sq.mt. x 18,950 Total value of the subject property Rs. 97,60,034 22 per cent. higher than to AC Subject property 3rd sale instance Sale agreement 9-7-1993 N-62 Panchsheel Park 800 sq. yds. having FIR Land rate declared works out at Rs. 28,455 per sq.mt. 29-4-1993 sale agreement consideration Rs. 1,56,00,000 If the rate of increase of 1 per cent. per month Rs. 35,02,220 4 months + 4 per cent. time gap Rs. 1,91,02,220 No open area Falling open area 5 per cent. No basement potential Basement available 10 per cent. + 4 per cent. 15 per cent. = 11 per cent. The land rate works out at Rs. 25,333 (28,455 x .89) Land rate of subject prop erty (ground floor, 1st floor) 520 sq.mts. = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such a matter. This court in Sudha Patil's case [1999] 235 ITR 118 has stated that when the appropriate authority comes to the conclusion one way or the other after giving due opportunity to the parties concerned and there has been undervaluation on that basis by more than 15 per cent. of the fair market value, the appropriate authority had jurisdiction to interfere with the same. The High Court took the view that there is nothing on record to suggest as to what were the special reasons for making a purchase order in respect of wholly tenanted property. Even assuming that there was some justification for the authority to initiate proceedings for the pre-emptive purchase of the property under Chapter XX-C of the Act, the method of valuati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erference under article 226 of the Constitution is very limited, but that is only in the nature of a judicial review of the proceedings and not by way of appeal or revision where the scope of interference is much wider. In cases of the present nature where several methods are available for finding out the value of the property and if one or the other method is adopted by the Department and that may be reasonable, it may not call for any interference. However, if there are loopholes or lacunae in the process of reasoning adopted by that authority in reaching the conclusion as in the present case that the ten anted property would be vacated soon or that the property is close to the vicinity of the situation of the subject property if compared ..... X X X X Extracts X X X X X X X X Extracts X X X X
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