Fair market value valuation is a factual question where the Tribunal may reject an unreliable departmental report.

The Tribunal was entitled to treat the Department's valuation report as only one piece of evidence and to reject it where its method and surrounding circumstances were found unreliable. It also considered comparable instances, the property's location and condition, and made a factual finding that the transfer was not for less than the real value. As the valuation issue was one of fact rather than a question of law, appellate interference was not warranted. The finding on fair market value and the refusal to order acquisition under Chapter XX-A were therefore upheld.

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Issues: Whether the Tribunal erred in holding that the apparent consideration represented the fair market value of the property and in refusing acquisition under Chapter XX-A of the Income-tax Act.

Analysis: The valuation report relied upon by the Department was only one piece of evidence and was not binding on the Tribunal. The Tribunal was entitled to assess its reliability and to discard it where it found flaws in the method adopted and the surrounding circumstances affecting valuation. The Tribunal also considered the comparable instances and the location and condition of the property, and recorded a factual finding that the property had not been transferred for less than its real value. The question of valuation in these proceedings was treated as one of fact, not a question of law warranting interference in appeal.

Conclusion: The Tribunal's finding on fair market value and refusal to order acquisition was upheld, and the appeal failed.

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