9911796707
TMI Blog1998 (7) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... een handed over to them much earlier in June, 1979 and the entire consideration had also been paid earlier. The sale deeds were registered on 21st July, 1980. 3. The Revenue initiated proceedings under s. 269C alleging that the property had been sold at a value which was less than the market value by a margin of 15 per cent. In support of that assertion sales effected in areas which were about 5 kilometers from the plots purchased by the respondents, and which showed the value at a rate much higher than the one paid by the respondents were cited. The respondents had purchased the plot at the rate of Rs. 40,000 per ground. The plots a purchased were also subject to certain restrictions. The purchaser was not to put up more than one buildin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s pointed out and its finding on this aspect is not challenged before us that there was no material whatsoever before the competent authority on the basis of which it was possible to hold that the consideration stated in the document had not been truly stated. There was also no evidence to show that the parties by this transaction were seeking to reduce or avoid the transferor's liability for tax in respect of any income arising from the transfer or that the transferee was seeking to conceal any income or moneys which had not been but ought to have been disclosed. The Tribunal has pointed out that the transferor had been assessed by the Revenue on its income in the amount shown in the sale deed and not on any other higher amount and ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It has been noticed by the competent authority that there were no sales at all in the area in which this plot is located. The opinion of the authority that the sales of properties located at a distance of five kilometers away are comparable, is wholly a subjective opinion unsupported by any acceptable material and such opinion by itself cannot amount to a proper determination of the market value. Fair market value is not any figure which the competent authority or the Department may choose to adopt. The market value is the price that a willing purchaser dealing at arms length would offer on that date of transaction if such an offer were open for consideration as on that date. The qualifying of the expression of the market value by the ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g or the land for commercial purpose is not permissible; the property cannot be freely sold as there is an obligation to give the first option to the others who had purchased the other plots in the same locality from the same vendor. 11. The Revenue therefore could not merely rely upon the sale transaction of the property which it chose to regard as comparable and thereafter proceeded to assert that, that value is the market value and proceeds still further to claim a presumption in its favour. Property owned by a citizen is not to be compulsorily acquired in that manner. The s. 269C is not intended to enable the Revenue to deprive the citizens of their properties by merely asserting that the price at which the property was transacted is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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