9911796707
TMI Blog1982 (10) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... ale deeds dated 23rd July, 1973, to Asharfi Lal Gupta and his wife, Smt. Phoolmati, for Rs. 30,000 each. It consisted of a double storeyed building and a plot measuring 347 sq. yds. The Sub-Registrar sent an information in Form No. 37G of the I.T. Rules in respect of this property to the departmental authorities. Upon the receipt of this report by the competent authority, the ITO was asked to make an enquiry on the spot. After making enquiry, he estimated the market value of this property as on the date of transfer to be Rs. 48,000. The competent authority, thereafter, referred the matter under s. 269L of the Act to the Valuation Officer at Kanpur. The Valuation Officer estimated the value at Rs. 50,050 on the basis of the land and buildi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rescribed under s. 269F(6) of the I.T. Act were fulfilled, the competent authority made an order for acquisition under Chap. XX-A of the I.T. Act. The acquisition proposed was in respect of both the portions of the aforesaid house. Aggrieved against the aforesaid two judgments, Asharfi Lal Gupta filed Appeal No. 1 of 1974 before the Income-tax Appellate Tribunal whereas Appeal No. 2 of 1974 was filed by his wife, Smt. Phoolmati. Both these appeals were decided by the common judgment dated 20th January, 1975, and the acquisition order by the competent authority was set aside. The first question that arises for consideration in the instant case is about the valuation of the two portions of the house in question regarding which the notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchased by Smt. Phoolmati Gupta is concerned, its fair market value does not exceed the apparent consideration by 15%. With regard to the portion purchased by Asharfi Lal Gupta, the difference is more than 25%. So far as the portion purchased by Smt. Phoolmati is concerned, the learned counsel appearing for the Revenue submitted that the Tribunal committed an error in changing the method that was applied by the competent authority for the valuation and, as such, the Tribunal's judgment suffers from an error of law and is liable to be set aside. We do not agree with this submission. It has been found as a fact by the Tribunal that there were four tenants in the portion Purchased by Asharfi Lal Gupta and they were paying Rs. 45 S. Admitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missible, no objection could be taken to the same. We, therefore, find that the Tribunal did not commit any error of law that this portion of the house had wrongly been ordered to be acquired by the competent authority. Coming to the portion of the house in dispute purchased by Asharfi Lal Gupta, the difference between the fair market value and the apparent consideration exceeded by more than 25%, hence, this sale came within the clutches of s. 269C(2)(a) of the I.T. Act. This sub-section lays down presumption in such a case of conclusive nature about the transfer deed having not stated the true price. However, s. 269E(3) affords an opportunity to the person concerned to lead evidence for showing that there was no untrue statement of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the house sold, but still, it heavily relied upon the condition of the building for reducing its value by applying the land and building method. The condition of the building could have been relevant if the latter method had been applied. But where, as here, the value had been found out on the basis of rent accrued from it, the condition of the building had become irrelevant. Similarly, the Tribunal although it found that the reasons which led to the sale of the property were not factually established, but still, it considered them to be an adequate explanation for the property not being sold at the rate available in the market. What led to the sale of the property was not a relevant consideration in the facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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