COMMISSIONER OF INCOME TAX Vs. CHANDER KANT DUA

JUDGEMENT

(1.) All these appeals have common factual background, therefore, our purpose would be served if we take note of the facts which appear in ITSA 1/1990. The Competent Authority had initiated proceedings under Section 269A (Chapter XX-A) of the Income-tax Act, 1961 for acquisitioning of property No. 16/78, Punjabi Bagh, New Delhi for which show-cause notice was given. Thereafter, orders dated 30-3-1989 were passed acquiring the said property. The said property belonged to Shri Chander Mohan Singh and Smt. Amrit Kuar and vide sale deed dated 25-9-1996 it was sold to Shri Shyam Sarup Dua and Smt. Chander Kanta Dua. Consideration stated in the sale deed was Rs. 15 lakhs. According to the Competent Authority, the value of that property was Rs. 30 lakhs and because of this reason, he initiated the proceedings for acquisition. The defense of the Respondent was that the sale of the said property was almost a distress sale. It was pointed out that the transferees belonged to Sikh community and because of the riots which took place in October, 1984, the transferees had decided to dispose of this property with an intention to shift to Punjab. They had also taken the plea that they were in panic and wanted to shift to Punjab as early as possible. The transferee was also getting in exchange a house in Ludhiana for Rs. 12 lakhs and this factor prompted him to sell the said property for Rs. 15 lakhs. The transferee had thus, pointed out the following distressing factors which led to the fixing of the aforesaid consideration between the parties:

(2.) The Competent Authority, however, did not accept this contention and passed the acquisition orders dated 30-3-1989. The Respondents preferred an appeal before the Income-tax Appellate Tribunal. The Respondents have succeeded inasmuch as vide orders dated 31-8-1989, the appeal of the Respondents is allowed accepting the value of the property in question as Rs. 15 lakhs in the given circumstances as explained above. We may also note that the Tribunal has set aside the process of initiation of acquisition proceedings also on the ground that there was no valid reasons to believe that fair market value of the property in question was Rs. 30 lakhs as determined by the Competent Authority. The Tribunal has dealt with all these aspects in the following terms:

(3.) We are in agreement with the aforesaid approach of the Tribunal. These appeals are without any merit and, accordingly, dismissed.