GIRNAR BUILDERS PRIVATE LIMITED Vs. INSPECTING ASSISTANT COMMISSIONER

JUDGEMENT

(1.) AN house property bearing No. 2 situated on Artillery Road, Civil Station, Bangalore City, measuring about 627 sq. mts. was originally owned by one Sadiq Hussain of Banglore City, who on June 15, 1981, transferred the same to the petitioner for a sum of Rs. 1,80,000. On an examination of the said transfer, the Inspecting Assistant Commissioner of Income-tax (Acquisition Range), Bangalore, ("IAC"), being of the opinion that the fair market value of the property exceeded the apparent consideration stated in the instrument of transfer by more than 15% had issued notice No. CR 62/30399/81-82 dated December 18, 1981 (annexure G) to the transferor and transferee under s. 269D(1) of the I.T. Act of 1961 (Central Act 43 of 1961) ("the Act"), proposing to acquire the property for the Government under Chapter XXA of that Act. In this petition under art. 226 of the Constitution, the petitioner has challenged the said showcause notice principally on two ground and they are (i) that the proceedings had not been initiated by the IAC within the permitted time and (ii) that the transaction being real and genuine, there was no justification to initiate proceedings under the Act.

(2.) THE respondents have resisted this writ petition.

(3.) IN his letter No. CR 62/30899/81-82/Acq. dated April 2, 1982 (annexure J), IAC has stated that the notice of acquisition had been published in the Government of INdia Gazette dated March 6, 1982, on page 2999 of part III-1, the correctness of which is not disputed by the petitioner. While that is so, this court must necessarily proceed to examine the case on the basis of the facts stated by the IAC in her letter dated April 2, 1982 (annexure J), which means that the notice of acquisition had been published in the Government of INdia Gazette dated March 6, 1982. Even otherwise, I have no reason to disbelieve the correctness of the statement made by the IAC in her letter dated April 2, 1982.