COMMISSIONER OF INCOME-TAX Vs. GOBIND RAM

JUDGEMENT

(1.) THIS common judgment shall dispose of Income-tax Appeals Nos. 4 and 5 of 1982.

(2.) THESE appeals arise out of the judgment of the Income-tax Appellate Tribunal (hereinafter referred to as "the ITAT") delivered on September 10, 1981. Shri Gobind Ram, son of Damodar Dass and Shri Hari Shanker, son of Shri Babu Lal, purchased a building situated at Narnaul from Shri Om Parkash, son of Shri Moti Lal Aggarwal, for a consideration of Rs. 35,000 as per sale deed registered at No. 77 dated April 24, 1973, with the Sub-Registrar, Narnaul. The building is having a land area of about 5,000 sq. yards and it consists of a number of rooms being used as godown and factories and,ten shops facing a road of about 10 ft. wide. It is a single-storeyed building.

(3.) THE respondent filed the appeal before the Income-tax Appellate Tribunal, New Delhi, who came to the conclusion that the valuation of the property by capitalisation of the net annual value would be Rs. 39,257 and that on that basis, the difference between the fair market value and the apparent consideration of Rs. 35,000 did not exceed 15 per cent. It also held that the offers by other people long after the property was sold have no meaning. The order of the Income-tax Appellate Commissioner was held to be erroneous. The Income-tax Appellate Tribunal, therefore, allowed the appeals and cancelled the order of acquisition of the property. The Department being aggrieved by the said order filed these appeals before this court.