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TMI Blog2007 (10) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... rchase flat No.1 situated on the ground floor of a building known as 'Rekha' at Ridge Road, Bombay- 400 006 ('flat in question' for short) for a consideration of Rs.10,51,000. The carpet area of the said flat was 925 square feet and the built up area of the said flat was 1014 square feet. The petitioners paid a sum of Rs.2,51,000, by way of earnest money and agreed to pay the balance consideration in instalments as more particularly set out in the agreement. 3. On 26th September, 1986, the petitioners filed a statement in form No.37EE along with transfer form with the competent Authority constituted under Chapter XX-A of the Act. 4. During the pendency of said proceedings Chapter XX-C was introduced to the Act w.e.f. 1st October, 1986. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proceedings under Chapter XX-C is concerned, the Appropriate Authority, on remand, issued a show cause notice on 30th December, 1992 calling upon the petitioners to show cause as to why the said flat should not be purchased in the light of sale instances set out therein. The petitioners filed detail reply to the said show cause notice and pointed out that the flat in question was not comparable with the sale instances set out in the show cause notice. The petitioners filed a report of the Registered Valuer to show that considering various disadvantages attached to the flat in question, the price at which the petitioners agreed to purchase the flat in question constituted the fair market value. The petitioners had also cited two comparab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when sale of a similar flat has been approved by the Appropriate Authority as NOC has been granted. Accordingly, Mr. Pardiwala submitted that the impugned order passed under Section 269UD(1) is liable to be quashed and set aside. 9. Mr. Ashokan, learned counsel appearing on behalf of the revenue, on the other hand, submitted that the Appropriate Authority has considered all the objections raised by the petitioners regarding the sale instances set out in the show cause notice and also the sale instances relied upon by the petitioners and has passed the impugned order in accordance with law. He submitted that prior to the decision of this Court in the case of Vimal Agarwal v. Appropriate Authority reported in [1994] 210 ITR 16, there was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be said that the price at which the petitioners agreed to purchase the flat in question is undervalued by 15% or more than the fair market value. Consequently, the impugned purchase order passed without determining fair market value cannot be said to be valid in law. 11. On perusal of the impugned order, it is seen that the Appropriate Authority concluded that the flat in question is undervalued by more than 15% of the fair market value by relying on six sale instances set out therein. In their reply, the petitioners had specifically stated that the sale instances referred to in the show cause notice are not comparable because, the said flats are situated in prestigious and posh buildings with unrestricted sea view and the flats in those b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioners has been undervalued by 15% or more than the fair market value. 12. It is pertinent to note that the petitioners had relied upon two sale instances, namely sale of a flat in building 'Dev Darshan' and sale of a flat in building 'Rekha'. It is not in dispute that the buildings 'Dev Darshan' and 'Rekha' (in which the said flat in question is situated) are situated in the same locality on the Ridge Road itself. Flat on the first floor in 'Dev Darshan' building was sold on 29/9/1986 at the rate of Rs.1,160/- per sq. ft. and the same has been approved by the Appropriate Authority, whereas, sale of the flat in question situated on the ground floor in building 'Rekha' which the petitioners have agreed to purchase by an agreement dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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