COMMISSIONER OF INCOME TAX Vs. KESRI CHAND

JUDGEMENT

(1.) This is an appeal under Section 269H of the I.T. Act, 1961, directed against the order of the Income Tax Appellate Tribunal, Delhi Bench (B), dated July 26, 1975, in I.T.A. No. 427 (Acq.)/DEL/1973-74. The provisions of the Act allow under Section 269C for the acquisition of immovable property which has been transferred at an under-valuation below the "fair market value" of the property. The property involved in this case was plot No. F-24/A situated in Hauz Enclave, New Delhi, measuring 493.7/10 sq. yards which was transferred by Mrs. Malti Bhandari in favor of Shri Kesri Chand for a consideration of Rs. 49,000 by a sale deed dated December 6, 1972, The competent authority under the Act being Shri C.V. Gupta, IAC of Income Tax, passed an order on February 4, 1974, holding that the fair market price of the property was Rs. 88,886 and, Therefore, the fair market price exceeded the apparent consideration by at least 25%. Accordingly, he passed an order under Section 269F giving three findings which were :

(2.) He, accordingly, ordered with the approval of the CIT, Delhi-II, New Delhi, under Section 269F(6) that the property be acquired under the provisions of Chap. XXA of the I.T. Act, 1961.

(3.) An appeal was filed before the Appellate Tribunal under the provisions of Section 269G of the Act against the order directing the acquisition of the property. The Tribunal came to the conclusion that the "fair market value" was lower than the amount fixed by the competent authority and in fact we are now concerned with the correctness of the method adopted by the Tribunal. In recomputing the fair market value, the value was calculated at Rs. 112.50 per sq. yard and hence it was found that the excess of the fair market value over the apparent consideration was not 15% and, accordingly, the appeal was accepted and the acquisition set aside.