Valuation Officer's Determination Rejected for Inaccuracies & Arbitrary Reductions; Acquisition Proceedings Quashed

The Tribunal rejected the valuation determined by the Valuation Officer/competent authority due to factual inaccuracies and arbitrary reductions. It deemed the acquisition proceedings unjustified and quashed them. The High Court upheld the Tribunal's decision, dismissing Revenue's appeals and affirming the Tribunal's justification. No costs were ordered.

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Issues: Whether the acquisition proceedings under Chapter XX-A were sustainable on the basis of the valuation made by the Government Valuation Officer and accepted by the competent authority.

Analysis: The comparable sale instances relied upon by the valuation authorities were found to be neither proximate in location nor in time. The distance between the subject land and the relied-upon instances had been understated, and the reductions of 10 to 20 per cent granted for locational and temporal differences had no sound basis. The factual findings of the Tribunal, including its inspection-based assessment of the relative locations and development levels, were not shown to be erroneous. In these circumstances, the valuation report forming the foundation of the acquisition proceedings was held to be arbitrary and unreliable. The Tribunal's further conclusion that neither the transferor nor the transferee had motive to suppress consideration was also accepted.

Conclusion: The acquisition proceedings were rightly quashed and the Revenue's challenge failed.

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