COMMISSIONER OF INCOME-TAX Vs. INDERJIT SINGH

JUDGEMENT

(1.) THIS appeal has been filed by the Commissioner of Income-tax, Patiala, under Section 269h of the I. T. Act, 1961, against the order of the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh, dated September 30, 1976.

(2.) BRIEFLY, the facts are that bungalow No. 2148, a building constructed on a 2-Kanal plot, situated in Sector 15-C, Chandigarh, was advertised by Smt. Harji Dhaliwal of Bombay, the owner, for sale in the Daily Tribune dated March 19, 1972. In November, 1972, the bargain of sale was struck between her and Shri Inderjit Singh, respondent, for a consideration of Rs. 1,00,000. The sale deed was got executed by the respondent from her on December 4, 1972.

(3.) AFTER the sale, the Competent Authority asked the Inspector of Income-tax to evaluate the property. He put its value at Rs. 1,53,800. The Competent Authority finding the assessed value 15% more, than the apparent consideration, initiated proceedings against the respondent under Section 269c of the Act. Thereafter, it asked Shri R. L. Grover, Executive Engineer (Valuation), to assess the value of the property. He, on the basis of land and building method, assessed its value at Rs. 1,68,500, vide report dated January 9, 10, 1975. While making that assessment, he erroneously took into consideration that the sale deed had been executed on December 4, 1974, and not on December 4, 1972. Therefore, the Competent Authority passsed an order of acquisition of the property under Section 269f (6) on the ground that its fair market value exceeded the apparent consideration therefor by more than 15%.