AI Drafter 
TaxTMI 
TaxTMI 
2004 (2) TMI 29
X X X X Extracts X X X X
X X X X Extracts X X X X
....s passed by the competent authority under section 269F(6) of the Act ordering acquisition of the property purchased by these three persons vide 13 sale deeds. Since the acquisition proceedings have been initiated in an identical style, on the basis of the official valuer's report in all these cases and the objections before the valuer and the competent authority had been identical and similar, the appeals were disposed of together after hearing arguments in I. T. A. No. 12/Delhi of 1986. This position is not disputed by counsel for the appellant and, therefore, he addressed the arguments only in I. T. A. No. 1 of 1989 from which the facts have been taken for the purpose of this order. The respondent-M/s. Ansal Housing Finance and Leasing Company Limited, vide sale deed registered at serial No. 760 dated May 13, 1986, purchased five bighas, eight biswas of land situated in village Chakkarpur, Tehsil Gurgaon, from S/Shri Chandgi Ram and Laxmi Narain, sons of Shri Piare Lal, for Rs. 10,15,876. The matter for evaluation of this property was referred to the Valuation Cell of the Government. The Valuation Officer vide his report dated April 26, 1986, determined the fair market valu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....under consideration. Average purchase rates of adjoining colony Phase I shall be comparable to the lands of the transferee. (v) The average selling price of the compared colony was much higher than the selling price booked by the transferee-company for the prospective purchasers. (vi) Land under consideration was not comparable with a land which was on the main road and the development being in full swing. The land of the transferee had only unlevelled kacha village rasta and was without any approach road. (vii) It is stated that they are still in the process of buying lands in the surrounding area on negotiated rates. The purchase rate depends upon the reputation of the buyer, negotiation of deal, development around the land, urgency on the part of the seller, the level and approach to the land, etc. (viii) Purchase made by M/s. Unitech Limited (South City) in village Salokhra in the surrounding areas are detailed below: -------------------------------------------------------------------------- Document Date Area Location Amount Vendee Ven....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... time of sale deeds all the sellers knew that D. L. F. had already acquired licence and the Government had approved the development and sale of land for residential colony. The seller could, therefore, realise higher price. (xii) In their cases they entered into agreement for the purchase of land in village Sukhrali and other surrounding villages in July/August, 1981, and immediately thereafter started having second thoughts about going ahead with the acquisition of further land for obtaining the licence for a colony. As a matter of fact, they dropped the idea and subsequently started filing suits against the sellers not for specific performance, but for recovery of earnest money and advances paid under agreements to sell. It was only in March/April 1985, that they revised their decision and got the licence in July, 1985. Therefore, the sale instances of D. L. F. were not at all applicable and comparable on this score. (xiii) It was submitted that notification under section 4 of the Land Acquisition Act regarding acquisition of land in villages Sarhol, Sukhrali and Chakkarpur had ultimately been issued in March, 1985, and there was a near panic among the land owners in these ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tation of the buyer, etc. I have come to know that the transferee enjoys a very good reputation in the area and the transferee is a well known coloniser in the area. As regards objection No. (viii), the transferee had relied upon a few selected sale instances of coloniser M/s. Unitech Limited (South City) who had purchased land in village Salokhra. First of all, it is clarified that we are supposed to rely upon the highest sale instance of the area and not on the sale instance showing the lowest rate of the area as selected by the transferee. My contention finds support from the judgment of the Supreme Court in the case of S. R. M. V. Rao Bahadur Rani of Vuyyar v. Collector of Madras [1968] 2 SCJ 869, wherein it was held that if there were several sale instances, then it was advisable to select the one where highest value had been declared. Similar was the decision of the hon'ble Punjab and Haryana High Court in the case of CIT v. Mohan Singh [1978] 112 ITR 430. M/s. Unitech Limited (South City) are small coloniser of the area unlike the transferee. They have also purchased the pieces of land showing higher rates than that of the transferee in village Sukhrali for colonisatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lonies are located on Delhi-Mehrauli Road, opposite to each other. Therefore, in my opinion, these are the best comparable cases. As regards the fact that M/s. D. L. F. Universal Ltd. are old coloniser and their land is slightly better with regard to location, etc. This factor would be kept in mind while arriving at the fair market value. As regards objection No. (xi), this factor would be given consideration while arriving at the fair market value of the property. As regards objection No. (xii), regarding suits of recovery, it is found from the lists of cases filed that suits have not been filed in any case under consideration. Therefore, no benefit can be allowed on this ground also. As regards objection No. (xiii) the issue of acquisition notice under section 4 of the Land Acquisition Act, I find from the copy of the notification that this notification had been issued on March 22, 1985, and this notice had been withdrawn on November 4, 1985. After having gone into the record, I find that barring one or two cases of the transferee situated in village Sarhol, no notification of acquisition had been issued in any other case. Due consideration could be given only in the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s discussed above (10 per cent, already allowed by the GVO in his valuation report for better location, etc.) balance 5 per cent, comes to 68,975 -------------- 13,10,525 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rauli-Gurgaon Road and another 4 kms. on National Highway No. 8 and again from DLF start to Tiratha. From 'Tiratha', proceeding towards Palam we moved to the old National Highway No. 8 on which there was a diversion, there ran a very narrow road leading to Palam Vihar which was a distance of 7 kms. or so. We entered the Palam Vihar area which further ran into a distance of 4 kms. in the Palam Vihar area it was visible that most of the plots did not indicate heavy digging due to brick kilns. Compared to DLF, Palam Vihar had very little construction coming up. Coming to Sushant Lok situation undoubtedly it is on Gurgaon-Mehrauli Road, but this is true that it has only an opening on that road which is about less than half km. or so. As that Sushant Lok colony goes long inside whereas as above said DLF has 4 kms. of length along with the same road. Then the perusal of the sale instances in certain cases is of two years earlier." On the basis of the above, the Tribunal was of the view that the reduction granted by the Valuation Officer/competent authority from the price reflected in the valuation report was totally arbitrary and without any basis. It was found as a fact that even on ....