2008 (8) TMI 507

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....ly understated and, therefore, subjected the said property for preemptive purchase at the consideration of Rs. 20,67,500 (-) 1,07,043 = 19,60,456 and, therefore, directed the transferee to hand over the possession. The petitioner (transferee) entered into an agreement of development and sale with one Shri Vikramsinha Bisen and five others (transferors) to transfer the land admeasuring 16,540 sq. ft in Khasra No. 55, Mouja Ajni PSK 9, Wardha Road, Nagpur, for consideration of Rs. 20,67,500, i.e., at the rate of Rs. 125 per sq. ft. The property mentioned in the agreement was sold at the rate of Rs. 150 per sq. ft., however, the consideration was agreed to be paid at the rate of Rs. 119 per sq. ft., i.e., at 26 per cent. less than the market r....

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....noted, there was nothing mentioned in the showcause notice dated December 30,1992, issued by the respondent/authority with regard to the sale transactions or the reason for taking decision to show cause as to why the property should not be purchased except calling the petitioner for hearing. Therefore, there was no material before the Authority except the sale instances relied upon by the petitioner, which was agreed to be sold at Rs. 150 per sq. ft. on April 5, 1989, whereas the property under consideration was agreed to be sold on October 2,1989, at the rate of Rs. 125 sq. ft. The sale instance so relied upon by the Department was, in fact, the instance relied upon by the petitioner. The terms and conditions of both these agreements apart....

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....nnot be overlooked while considering section 269UA(1) of the Income-tax Act. It is difficult to dissect and read separately this part of agreement, which is definitely interlinked and connected to decide the term "apparent consideration" of the specified agreement. Thus, the additional cost to be borne by the purchaser works out to Rs. 28 per sq. ft. and, therefore, total consideration payable per sq. ft. works out to Rs. 147, i.e., Rs. 119 + Rs. 28. This amount is, therefore, quite reasonable in comparison with the rate of Rs. 150 per sq. ft as considered to be fair market value by the Appropriate Authority. It is also be noted that the details about co-ownership was also mentioned and reflected in the agreement for development and sale wi....