COMMISSIONER OF INCOME-TAX Vs. GANESHA MAL

JUDGEMENT

(1.) WHETHER the initiation of the proceedings for the acquisition of immovable property under Chapter XXA of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), is complete by the publication of the notice in the Official Gazette under Section 269d (1) or from the date of service of the said notice on the transferor/transferee under Section 269d (2) of the Act is the question which falls for determination in this appeal.

(2.) ONE Ramesh Kumar, son of Shri Manohar Lal, resident of village Sukheranwal tehsil Dabwali, District Sirsa, sold agricultural land measuring 182 kanals 11 marlas to Sarvshri Ganesha Mal and Chetan Dass, sons of Dewani Mal, vide registered sale deed dated February 8, 1977, for an apparent consideration of Rs. 30,000. The competent authority on receipt of information from the Sub-Registrar, Dabwali, in Form No, 37-G made a reference to the Income-tax Officer, B-Ward, Sirsa, who also acted as the Agricultural Land Valuation Officer for determining the fair market value of the land sold. The Agricultural Land Valuation Officer after making enquiry submitted his report determining the fair market value of the land as Rs. 92,000. On the basis of the report submitted by the Agricultural Land Valuation Officer, the "competent Authority" having reason to believe that the immovable property of the fair market value exceeding Rs. 25,000 had been transferred and the difference between the market value and the apparent consideration of such property being more than 15 per cent. , there was reason to believe that the consideration as agreed between the parties had not been truly stated in the instrument of transfer with the object of :

(3.) THE competent authority received objections from the transferors on February 8, 1978, and from the transferees on February 16, 1978. The objections raised included the objections regarding the service of notice under Section 269d (2) being time-barred as the notices were served upon the transferor/transferees beyond nine months from the date of the sate of the property.