1981 (9) TMI 91

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..... nging the legality of the notice under s. 269D(1) of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), served on the petitioners by the competent authority, namely, the Inspecting Assistant Commissioner of Income-tax, Acquisition Range I, Bombay, on August 27, 1974. The facts which have given rise to these proceedings are required to be noted briefly. An immovable property adme .....

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..... he immovable property, the value of which exceeds Rs. 25,000, has been transferred by the trustees in favour of the petitioners for an apparent consideration which is less than the fair market value of the property. The notice was issued by the Competent Authority as the transfer attracted the provisions of s. 269C of the Act giving rise to the Competent Authority to acquire the property. The peti .....

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..... vable property of a fair market value exceeding twenty-five thousand rupees has been transferred by a person (hereafter in this Chapter referred to as the transferor) to another person (hereafter in this Chapter referred to as the transferee) for an apparent consideration which is less than the fair market value of the property and that the consideration for such transfer as agreed to between the .....

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..... er that no such proceedings shall be initiated unless the competent authority has reason to believe that the fair market value of the property exceeds the apparent consideration therefor by more than fifteen per cent. of such apparent consideration." The plain reading of this section indicates that the competent authority can assume jurisdiction provided the consideration for the transaction is .....

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..... of the petitioners is in respect of the assumption of jurisdiction, and no notice could be issued by the competent authority unless the basic requirements of section 269C of the Act are satisfied. In these circumstances, no valid purpose would be served by directing the petitioners to appear before the competent authority. On the other hand, it would merely lead to multiplicity of proceedings. In .....

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