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TMI Blog1978 (8) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... e referred to as the disputed property). The said plot lies in Khagra No. 584/457-58. The said plot alongwith super-structure, namely, the shed was transferred to Shri Nirmal Singh and Shri Manmohan Singh, sons of Shri Prithipal Singh (hereinafter to be referred to as the transferees) vide registered sale deed No. 3534, which was executed in Jan., 1975 for an apparent consideration of Rs. 45,000. The fair market value of the disputed property was got investigated by the Competent Authority and the matter was referred to the Valuation Officer, who submitted a report dt. 26th July, 1975 estimating the fair market value at Rs. 80,000 as against the apparent consideration of Rs. 45,000. The Valuation Officer estimated the value of the plot of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation Officer. Reducing the rate of land, he estimated the fair market value at Rs. 71,000. He, therefore, was satisfied that the fair market value of the disputed property exceeds the apparent consideration therefor by more than 15 per cent of apparent consideration and the consideration for such transfer, as agreed to between the parties, has not been truly stated in the instrument of transfer with such object as is referred to in cl. (a) or cl. (b) of the sub-s. (1) of s. 269C. After obtaining the prior approval of the CIT, he passed the impugned order acquiring the disputed property. 3. It is against this order the transferor as well as the transferees have come up in the appeal to the Appellate Tribunal. On their behalf, D.P. Mahaja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative that initiation of proceedings becomes complete when the formality, prescribed by s. 269D (1) is fulfilled and that no legal steps are required to be taken in sub-s. (2) of s. 269D to complete the initiation of the acquisition proceedings. He urges that legal requirement, as envisaged by sub-s. (1) of s. 269D, was fulfilled within the time and thus there was valid initiation of proceedings. For want of service of notice on Shri Manmohan Singh, the Revenue argues, the initiation of proceedings will not become invalid because service of the notice, as envisaged by sub-s. (2), had nothing to do with the act of initiation of the proceedings. which is to be completed under Sub-s. (1) of s. 269D. On the other hand, Shri Mahajan submits tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... direction that he shall cause a notice served, as required by sub-s. (2) of s. 269D, on Shri Manmohan Singh and, thereafter, dispose of the case according to law. As the proceedings are void, the question of sending the matter back to the Competent Authority does not arise. 6. Another argument of Shri Mahajan is that the proceedings cannot be said to have initiated in the legal manner, for another reason, i.e. the notices on Shri Paramjit Singh and Shri Nirmal Singh were served after the expiry of 9 months. He argues that for valid initiation of the proceedings, the legal requirements, as envisaged by sub-s. (1) and sub-s. (2) of s. 269D should have been fulfilled within the period of 9 months and that if the legal requirements, prescri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction has been served on the assessee before the expiry of four years from the end of the year in which the income was first assessable. It is added by the High Court that it will not be enough if such notice is issued before the end of four years, but not served before the end of four years. We think that this analogy can be availed of to reject the contention of the Departmental Representative. So what is required is that the notice must have been served within the period of 9 months and mere issue of the notice is not enough to fulfil the conditions, prescribed for legal initiation of proceedings. Acquisition proceedings have not been made validly initiated, for the reasons given by us in the fore-going paragraphs, deserves to be quashed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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