9911796707
TMI Blog1984 (4) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... d the aforesaid 1/3rd share of the above named property to the three transferees, named above. The consideration which was charged from each of the three transferees, as stated in the registered deed was Rs. 27,000. The IAC (Acq), the competent Authority, was of the view that the consideration for the 1/3rd interest in the aforesaid property, was understated in the sale-deed. Accordingly, he caused the valuation of the aforesaid property to be referred to the Valuation Officer, Ludhiana, who valued the whole property at Rs. 1,38,819. He, thus, valued 1/3rd share at Rs. 46,275 against the apparent consideration of Rs. 27,000, mentioned in the sale-deeds. According to the sale-deeds, the entire property was to be valued at Rs. 81,000. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s placed by the Valuation Officer, was not only improper but also excessive. He had depended upon, for a comparison, on a plot, referred to in Deed no. 978. This plot was half the size of the plot in issue and was more suitable situated than the property, acquired by the transferees. The smaller plot was also far away from the railway line and was nearer the main road as against the aforesaid property of the transferees. Both the Valuation Officer, as well as the IAC (Acq) ignored these objections and held that the aforesaid property should be valued at Rs. 1,38,000, and as there was under statement of the consideration in the three sale-deeds, the transferees were liable under s. 269 F(6) and were to transfer the aforesaid property to reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty apart from the fact that the noise and the fume emitted by the trains, constituted a permanent nuisance. There was also danger posed to the children of the house. When these features were considered together in totality, it appeared that the valuation at Rs. 2,000 per Marla was excessive. He also pointed out to the fact that the depreciation worked out by the Valuation Officer, in reaching the fair market value of the property was not correctly arrived at. A reference was also made to the poor quality of the material with which the building had been constructed. There was also reference to the poor design of the house, which had only one entrance for the three transferees and one common water pump. Accordingly, he submitted that the IAC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the property. This is not enough. He has to have reason to believe that the understatement of the consideration was with the object of facilitating the reduction or evasion of the liability of the transferor to pay tax under this Act or to facilitate the concealment of any income which ought to be the subject matter under the Indian IT Act. In other words, there should not only be under statement of sale consideration, but there must be finding that understatement was done with a view to evade and reduce the liability for tax. It is not only a formal requirement, prescribed by the legislature, but is an essential requirement by itself. We have read through the aforesaid order of the Competent Authority and have not found a finding based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the sale of the said property. Hence, in pursuance of s. 269C of the IT Act, 1961, I hereby, initiate the proceedings for the acquisition of the aforesaid property by the issue of notice under s. 269D(I) of the said Act." The order passed, is a printed form where some small entries were filled in by the CA in consideration of these, the finding contained in the acquisition order and the reasons recorded in the printed form do not show that the IAC (Acqn.) had applied his mind properly. If there was any application of mind, it was only to make the acquisition some how which could not lead the IAC (Acqn.) to have reason to believe that there was under statement of the consideration and that the consideration was with a view to facilita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marcated and unspecified interest in the property, placed the valuation at 1/3rd of the total valuation placed by the valuation officer. We, therefore, do not proceed further to consider the handicap of this property, resulting from the proximity of the railway line and the irregular shape of the plot etc. It is enough to bear out that the finding of understatement was not properly proceeded out by the Competent Authority. Having realized that neither of the two requirements of s. 269C have been fulfilled, we are of the view that he went in error in assuming the jurisdiction under s. 269C and to set in motion the procedure to acquire the property. We hold his order erroneous and accordingly, vacate it. The properties shall be released if al ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
