COMMISSIONER OF INCOME TAX Vs. ASHARFI LAL GUPTA

JUDGEMENT

(1.) THESE two appeals under Section 269H of the I.T. Act have been preferred by the Commissioner of Income-tax, Kanpur, against the judgment of the Income-tax Appellate Tribunal, dated 20th January, 1975, setting aside the acquisition of house No 112/331-332, Swarupnagar, Kanpur, and the plot measuring 347 sq. yards. This property, which belonged to one Om Prakash Gupta, was sold under two sale deeds dated 23rd July, 1973, to Asharfi Lal Gupta and his wife, Smt. Phoolmati, for Rs. 30,000 each. It consisted of a double storeyed building and a plot measuring 347 sq. yds.

(2.) THE Sub-Registrar sent an information in Form No. 37G of the I.T. Rules in respect of this property to the departmental authorities Upon the receipt of this report by the competent authority, the ITO was asked to make an enquiry on the spot. After making enquiry, he estimated the market value of this property as on the date of transfer to be Rs. 48,000. THE competent authority, thereafter, referred the matter under Section 269L of the Act to the Valuation Officer at Kanpur. THE Valuation Officer estimated the value at Rs. 50,050 on the basis of the land and building method and at Rs. 49,000 on yield and rental method. For the other portion, which was sold to Smt. Phoolmati, the valuation estimated was at Rs. 49,800. Upon being satisfied and after recording reasons under Section 296G of the I.T. Act, the competent authority initiated proceedings for acquisition. THE reasons given by the competent authority were :

(3.) AGGRIEVED against the aforesaid two judgments, Asharfi Lal Gupta filed Appeal No. 1 of 1974 before the Income-tax Appellate Tribunal whereas Appeal No. 2 of 1974 was filed by his wife, Smt. Phoolmati. Both these appeals were decided by the common judgment dated 20th January, 1975, and the acquisition order by the competent authority was set aside.