9911796707
TMI Blog2002 (7) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... nsferees and one of the transferees is the respondent herein in the appeal. The competent authority, notified by the Central Government under the provisions of Chapter XX-A of the Income-tax Act, 1961, initiated proceedings for acquisition of the property and the publication of notice in the Official Gazette was made under section 269D(1) of the Act, dated January 4, 1996. The competent authority was of the opinion, that the value of the property was understated and, therefore, he initiated the proceedings for the acquisition of the property. The competent authority, after hearing the parties, passed separate orders acquiring the properties covered in the instrument of transfer. The respondent herein preferred an appeal, challenging the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e instrument of transfer. Learned senior standing counsel for the Revenue relied upon the decision in CIT v. T.V. Suresh Chandran [1980] 121 ITR 985 (Ker) and also the decision of the Punjab and Haryana High Court in Sutlej Chit Fund and Financiers (P.) Ltd. v. CIT [1986] 161 ITR 174. Learned senior standing counsel, therefore, submitted that the presumption under subsection (2) of section 269C of the Income-tax Act would be available to the competent authority even prior to the publication of the notice in the Official Gazette under section 269D of the Act for initiating the proceedings for the acquisition of the property. Learned counsel appearing for the respondent referring to the decision of the Gujarat High Court in CIT v. Smt. Vimal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ument of transfer; (4) The competent authority should record the reasons; and (5) A notice for acquisition should be published in the Official Gazette. The short question that arises for consideration is whether the presumptions prescribed under section 269C of the Act would be available at any stage prior to the decision of the competent authority for acquisition of the property. We find that on this point there are divergent views expressed by the different High Courts. The Kerala High Court in CIT v. T.V. Surest Chandran [1980] 121 ITR 985 and the Punjab and Haryana High Court in Sutlej Chit Fund and Financiers (P) Ltd. v. CIT [19861 161 ITR 174 have taken the view that the presumptions in sub-section (2) to section 269D of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of the said Chapter, the competent authority must have reason to believe that the fair market value of the property of more than Rs. 25,000 exceeds the apparent consideration stated in the instrument of transfer and the parties have agreed to make the untrue statement with an ulterior motive of tax evasion or concealment of income." It is also relevant to notice that the Gujarat High Court in CIT v. Smt. Vimalaben Bhagwandas Patel and Smt. Kamlaben Kanjibhai Patel [1979] 118 ITR 134 while deciding the case, had noticed the views expressed by the Delhi High Court in Mahavir Metal Works P. Ltd. v. Union of India [1974] 95 ITR 197. We are of the view that when the Supreme Court noticed the decision of the Gujarat High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value regarding the market value of the property, it would not constitute the material for the formation of the reason to believe that the apparent consideration was not truly stated in the instrument of transfer with the object of facilitating the reduction or evasion of tax liability of the transferor or transferee or concealment of income by any one of them. In effect, there was no evidence to show that the extra consideration was passed. In the absence of any material before the competent authority to form a reasonable belief that there was an ulterior motive of tax evasion or concealment of income-tax due to untrue statement of the apparent consideration in the instrument of transfer, we hold that the order of the Appellate Tribunal qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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