AJEET SINGH Vs. APPROPRIATE AUTHORITY

JUDGEMENT

(1.) BY this writ petition, the petitioner seeks a writ of certiorari praying for quashing of the order dated September 12, 1994, passed under Section 269UD of the Income-tax Act, 1961, whereby the appropriate authority had passed an order for pre-emptive sale of the property being Plot No. 404, Sector-XVA, Noida district, Ghaziabad. The petitioner further prays that the respondents be directed not to take possession of the property in question.

(2.) THE writ petitioners jointly agreed to purchase the aforesaid property on July 25, 1991, for Rs. 14,50,000. A sum of Rs. 4,35,000 was paid by the petitioners to the said respondent No. 3 and it was agreed that balance of Rs. 10,15,000 will be paid on execution and registration of the sale deed by the buyer to the seller. THEreafter, the petitioner sought permission for transfer of the land under Section 269UD of the Income-tax Act in the prescribed form from the appropriate authority. On October 28, 1991, the valuer of the Income-tax Department had directed the petitioners to produce certain documents relating to the property in question. THE said direction of the Valuation Officer was complied with by the petitioner.

(3.) THE appropriate authority subsequently heard the matter and disposed of the representations of the petitioners by confirming the order of preemptive purchase of Plot No. 404 and rejecting the representations of the petitioners primarily holding that for arriving at the fair market value of land/building rates prevailing at a particular time, the officials do make enquiries from various property dealers and other connected persons before coming to their decision. This is not an unusual methodology. However, in this case the Valuation Officer had cited a definite case of sale transaction of a similar sized plot in the same sector. He had then arrived at the fair market value of the instant property. THE cases cited by the transferor are not for comparable areas/cost indicated therein and as such the appropriate authority did not have any chance to examine these cases.