LAXMANRAO NARAYANRAO CHARMALKAR Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) IN this petition, the petitioners have challenged the order passed on 31st Oct., 1995 by the Appropriate Authority exercising the powers vested in it under s. 269UD(1) of the IT Act, 1961.

(2.) PETITIONER No. 1 (hereinafter referred to as the vendor) and petitioners No. 2A to 2D (hereinafter referred to as the confirming parties) entered into an agreement on 4th July, 1995 with petitioner No. 3 (hereinafter referred to as the developer) for development of the plot in question, for a consideration of Rs. 74 lakhs. Form No. 37 -I with details in respect of the property in question was filed. On 22nd Sept., 1995, members of the Appropriate Authority inspected the property under consideration (hereinafter referred to as the PUC). The property is located at about 250 mtrs. away from Dnyaneshwar Paduka Chowk (Pune). 22nd March, 1996

(3.) THE second instance indicated in the show notice is an immovable property at Shivaji Nagar, Pune, for which also an agreement for development was entered into on 3rd June, 1995. This SIP -2 was a land admeasuring 761.81 sq. mtrs. On this plot of land, there was an existing building having built up area of 659.89 sq. mtrs. Since the developers were going to demolish the existing building, the scrap value of the structure was estimated at Rs. 2,87,600. After deduction of the same from the discounted consideration of Rs. 1,79,46,795 (the stated consideration is Rs. 1,85,00,000), the land rate of this SIP -2 was calculated at Rs. 23,181 per sq. mtr. As per another computation mentioned in the notice, after deducting the depreciated value of the building, the net land rate was calculated at Rs. 20,726 per sq. mtr. This SIP -2 is located 1.5 km. away from Deccan Gymkhana Chowk and about 30 ft. wide Kelkar Road which connects Fergusson College Road and Apte Road. It is about 250 mtrs. off Fergusson College Road and 150 mtrs. off Apte Road. The Competent Authority has mentioned in the notice that this SIP -2 is similar and comparable with the PUC as well as SIP -1. The land rate of the PUC as compared to SIP -II is understated by Rs. 12,846 per sq. mtr., i. e, by 125%, as mentioned in the notice. However, it is also stated in the notice that the difference between the PUC and SIP -2 is that the purchaser is a commercial organisation and as the name suggests, they may construct a hotel on the plot, which is permissible as per the rules of the municipal corporation. Considering this, the Appropriate Authority reduced the land rate by further 30% for the purpose of comparison with the PUC. Even thereafter, according to the Competent Authority, the stated price of the PUC is much lower.