COMMISSIONER OF INCOME-TAX Vs. PREM KUMARI

JUDGEMENT

(1.) This is an appeal under Section 269H of the I.T. Act against the judgment of the Appellate Tribunal passed under Section 269G.

(2.) The facts are these :--Property No. 96, Tagore Town, Allahabad, was transferred on 31st October, 1973, by Hansraj to K.K. Agrawal, son of Ram Prasad Agrawal, and Smt. Prem Kumari Agrawal, wife of Ram Prasad Agrawal. The apparent consideration shown in the sale deed was Rs. 43,500 for the portion transferred to K.K. Agrawal and Rs. 48,500 for the portion transferred to Smt. Prem Kumari Agrawal. After receipt of Form 37G and enquiry, the ITO initiated proceedings for acquisition on the ground that the apparent value of the property was much less than the real. Objections against the initiation of the proceedings were filed by both the transferees. On 8th September, 1975, the IAC, Acquisition Range, Lucknow, held that the apparent value of the property for which it had been sold to the two transferees was less than the real value. Accordingly, the same was liable to be acquired under Chap. XX-A of the I.T. Act, For coining to this finding, the IAC adopted the figure of the Departmental valuer, according to which the valuation was Rs. 1,78,500. This valuation had been arrived at on land and building method. Aggrieved by this order, two appeals were filed before the Income-tax Appellate Tribunal, Allahabad, being numbered as 20 and 21. These appeals were allowed on December 29, 1975. Being dissatisfied, the Commissioner has preferred these two connected appeals.

(3.) The learned counsel for the Department contended that the Tribunal was in error in holding that the apparent consideration for the transfer represented the fair market value of the property although the approved valuer appointed by the transferees themselves had estimated the fair market value of the property transferred at Rs. 1,29,000. The learned counsel urged that as the difference between the apparent value and the one adopted by the approved valuer was more than 25 per cent., the Tribunal's order was illegal.