COMMISSIONER OF INCOME TAX Vs. RATHOR

JUDGEMENT

(1.) THIS appeal under Section 269H of the I.T. Act of 1961 (hereinafter referred to as "the Act") is against the decision of the Income-tax Appellate Tribunal, Cuttack Bench, dated February 21, 1977, by which the said Tribunal allowed the appeal of the respondents and set aside the order dated March 31, 1976, made under Section 269F of the Act.

(2.) A four-storeyed building standing upon a plot of land with an area of 81 decimals on the Ice Factory Road near the Ravenshaw College in Cuttack Town was sold under Sale Deed No. 2309 dated May 15, 1973, for a consideration of Rs. 1,15,000 by Kooverji K. Rathor in favour of Himanshu V. Rathor and K. R. Rathor. The vendees were minors and were represented by their respective fathers to complete the transaction of sale. The Competent Authority under the Act on getting information from the District Sub-Registrar under Section 269P of the Act being of the view that the sale was for an apparent consideration which was less than the fair market value of the property, initiated a proceeding under Chap. XX-A of the Act. The Competent Authority initiated acquisition proceedings in terms of Section 269C by publishing a notice in the Gazette of India on November 24, 1973. Copies of such notice were served on the transferor and the transferees. Proclamation in terms of Rule 48E of the I.T. Rules, 1962, was also made. The Competent Authority asked the Valuation Officer to determine the fair market value of the property and the Valuation Officer determined the market value by a report dated April 8, 1974, at Rs. 2,11,000.

(3.) TWO other contentions had been advanced before the Tribunal which were not examined as, in its opinion, the answer to the first contention was sufficient to dispose of the appeal. Since we have not agreed with that view, the other two questions, particularly the second one relating to actual valuation of the property on the date of the transaction, should be examined by the Tribunal.