Statutory presumptions cannot replace jurisdictional material in property acquisition under Chapter XXA when understatement is not proved.

Chapter XXA acquisition proceedings must be supported at initiation by relevant material showing a rational nexus with the belief under section 269C(1); statutory presumptions under section 269C(2) cannot themselves establish jurisdiction. The article notes that, on the facts discussed, comparable sales supported the declared consideration, the valuation report ignored material property disadvantages, and the fair market value was not shown to exceed the apparent consideration by the requisite statutory margin. An acquisition order resting only on presumptions and lacking independent findings of understatement or illicit object is therefore unsustainable.

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Issues: Whether the acquisition order under Chapter XXA was sustainable when the Competent Authority invoked the statutory presumptions at the stage of initiation, and whether the material on record established understatement of consideration so as to justify acquisition.

Analysis: The initiation of acquisition proceedings had to rest on relevant material giving rise to a rational and direct nexus with the belief required by section 269C(1). The statutory presumptions in section 269C(2) could not be treated as conclusive at the initiation stage itself. On the facts, the comparable sale instances relied upon by the assessee showed that the apparent consideration was supported by the market evidence, while the valuation report failed to account for material disadvantages affecting the property. The fair market value was not shown to exceed the apparent consideration by more than the statutory margin, and the impugned order rested only on presumptions without independent findings of understatement or illicit object.

Conclusion: The acquisition order was not justified and could not be sustained.

Final Conclusion: The appeal succeeded and the acquisition of the property was quashed for failure to satisfy the statutory conditions governing valid acquisition under Chapter XXA.

Ratio Decidendi: Statutory presumptions of understatement cannot substitute for the jurisdictional basis required to initiate acquisition proceedings, and an acquisition order fails where the fair market value is not proved to exceed the apparent consideration by the requisite margin on relevant material.

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