HARISH KANAYALAL THAWANI Vs. S C PRASAD

JUDGEMENT

(1.) BY filing this writ petition, the petitioners are challenging orders at Exhibit "E" and Exhibit "N". So far as the impugned order dated 26-7-1993 (Exhibit "E") is concerned, the same was passed under Section 269 UD of the Income Tax Act, 1961 ('Act' for short). The petitioners, thereafter preferred rectification application and the same was rejected by order dated 7-9-1993, which is annexed at Exhibit "N" to the petition.

(2.) SO far as petitioner Nos.1 and 2 are concerned, they are purchasers of the flat sold by petitioner Nos.3 and 4. A show cause notice dated 14-7-1993 was issued for acquiring the said property under the provisions of Section 269 UD(1) of the Act. By the impugned order (Exhibit "E"), the appropriate authority, after considering sale transaction, came to the conclusion that the flat in question is superior as compared to other flats regarding whose transaction reliance was made on behalf of the petitioners. The authority found that the rate worked out at Rs.5074/- per square feet is low and the fair market value of the flat in question should be atleast Rs.6,000/- per square feet, built-up area. It was found that the suit property is fit for purchase by the Central Government in exercise of the powers vested in Appropriate Authority under section 2690 UD(1) of the Act.

(3.) THE learned counsel appearing for the petitioners submitted that the authority has not taken care to arrive at a correct market value by taking into consideration various sale instances produced before it. It is submitted that the authority is required to fix the fair market value after considering relevant sale instances in the area. It is further submitted that before passing the impugned order at Exhibit "E", the petitioners were not given reasonable opportunity to defend their case. It is further submitted that various sale instances, on which reliance is placed by the petitioners, have not been taken into consideration at all by the authority before passing the order. Copy of such sale instances have been annexed with the petition at Exhibit "A" (page 66).