https://www.taxtmi.com/caselaws?id=23472 For initiation of acquisition under section 269C(1) of the Income-tax Act, the authority must have a reason to believe that the apparent consideration is below fair market value by the prescribed margin and that the understatement was made with the required object. Where the property is tenanted and protected by the Bombay Rent Act, the fair market value of the reversionary interest cannot be assessed on a vacant-possession or land-and-building basis; the proper approach is capitalisation of rental income. On that footing, a valuation based on the wrong method cannot by itself found the jurisdictional belief needed to start acquisition proceedings, and such notices were treated as unsustainable. en-us Mon, 02 Apr 1990 00:00:00 +0530 Sat, 19 Dec 2009 15:22:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23472 For initiation of acquisition under section 269C(1) of the Income-tax Act, the authority must have a reason to believe that the apparent consideration is below fair market value by the prescribed margin and that the understatement was made with the required object. Where the property is tenanted and protected by the Bombay Rent Act, the fair market value of the reversionary interest cannot be assessed on a vacant-possession or land-and-building basis; the proper approach is capitalisation of rental income. On that footing, a valuation based on the wrong method cannot by itself found the jurisdictional belief needed to start acquisition proceedings, and such notices were treated as unsustainable. Case-Laws Income Tax Mon, 02 Apr 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23472