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TMI Blog1990 (8) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... t Authority to issue notice dated July 14, 1987, under section 269D(1) and the jurisdiction of the Valuation Officer to issue notice dated September 23, 1987, under section 269L of the Income-tax Act, 1961. The petitioners purchased the suit property for a sum of Rs. 30,00,000. under an agreement of sale dated July 16, 1986. The property comprised of a building standing on or about 6,377 sq. mts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t property under section 269C should not be initiated. On September 23, 1987, the District Valuation Officer issued a notice under section 269 L. At this stage, the petitioners filed the present petition. The petition is actually filed on March 25, 1988, and was admitted on April 5, 1988, when interim relief in terms of prayer clause (a) was granted. However, no affidavit-in-reply has yet been f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was less than the fair market value of the property in question. This condition for assumption of jurisdiction under section 269D/269C is, therefore, not satisfied. Another condition for assumption of jurisdiction under section 269D/ 269C is that the Competent Authority at least prima facie holds that the consideration agreed between the parties is not shown truly in the sale agreement with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the transferor or transferee or both, the proceedings require to be quashed for non-application of mind. Following the aforesaid judgment, Bharucha J. also took the same view in this judgment dated August 9, 1989, in Writ Petition No. 838 of 1983 (Carmichael Shikarkunj Co-operative Housing Society Ltd. v. Union of India [1991] 189 ITR 441 ). A similar view was taken by this court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oners' application in Form No. 37-1. The circular is clearly applicable in this case. The circulars issued by the Board are binding on the departmental authorities. In the circumstances, it will have to be held even on this score that the proceedings sought to be initiated by the Competent Authority under section 269D(1) of the Income-tax Act, 1961, for the acquisition of the suit property are wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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