B M MARAPPA Vs. INSPECTING ASSISTANT COMMISSIONER

JUDGEMENT

(1.) THESE appeals and cross appeals are directed against a common order made by the Income tax Appellate Tribunal, Bangalore Bench (Tribunal), on June 30, 1975, in Appeals Nos. I.T.A. (Acq.) Nos. 31, 32, 33 and 34/Bang/1975-76, reversing the order No. C.R. 62/ 1601/73-74 Acq. (B), dated February 12, 1975, of the Inspecting Assistant Commissioner of Income-tax, Acquisition Range, Bangalore, made under Chapter XX-A of the Income-tax Act, 1961 (Central Act No. 43 of 1961) ("the Act").

(2.) AN immovable property bearing No. 1011/44, situated on Ist Main Road, IV Block, Rajajinagar, Bangalore-10, was owned by Smt. Girijamma (transferor). On August 3,1973, the said transferor, under a registered instrument of transfer, transferred the said property to Sriyuths B. M. Byrappa, B. C. Hanumanthappa, B. M. Marappa and B. V. Nagaraj of Bangalore (transferees) for a consideration of Rs. 80,000.

(3.) AGAINST the order of the Inspecting Assistant Commissioner, the tranferees filed appeals in Appeals Nos. 31, 32, 33 and 34 of 1975, under section 269G of the Act before the Tribunal. Before the hearing of their appeals, the appellants sought leave of the Tribunal to urge an additional ground to the effect that the proceedings initiated by effecting service of notices on them even before the publication of the notice in the Official Gazette was an invalid assumption of jurisdiction by the Inspecting Assistant Commissioner and the completion of proceedings for acquisition were void at law and invalid. On allowing the said additional ground to be urged, the Tribunal by its order dated June 30, 1975, has accepted the same and has allowed the said appeals, however, holding against them on the fair market value of the property acquired by the Inspecting Assistant Commissioner.