1995 (11) TMI 32

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....at Pal Singh, Chuni Lal son of Jaut Ram, Dalip Singh and Dharampal, for an apparent consideration of Rs. 93,000 as per sale deed dated January 10, 1973. The total area of the land sold was 1,493 square yards, including 426.7 square yards of constructed area. On receipt of information from the Sub-Registrar concerned, the competent authority made a reference to the Valuation Officer on June 12, 1973, to determine the fair market value of the property purchased by the above mentioned transferees. The Valuation Officer was required to submit his report within a fortnight as the acquisition proceedings, if necessary, had to be commenced within a period of six months from the end of the month in which the property was transferred. It was reporte....

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....acquired. Being aggrieved by this order of acquisition, two of the transferees, namely, Surat Singh and Dalip Singh, filed separate appeals before the Income-tax Appellate Tribunal, Chandigarh. It was contended on their behalf before the Tribunal that the material before the competent authority was not sufficient for it to form the belief that the aforesaid property had been transferred for an apparent consideration which was less than the fair market value and that the conditions precedent for initiating proceedings for acquisition under section 269C(1) of the Act were not satisfied. It was also urged that notices on the transferor and the transferees had been served prior to their publication in the Official Gazette and, therefore, the sa....

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....t of which at the market rate of Rs. 120 per square yard works out to Rs. 1,62,000. What has been determined by the Valuation Officer is the cost of the plot and not its fair market value. As to how the market rate of Rs. 120 per square yard had been worked out has not been mentioned in the report. This report is dated July 4, 1973. It appears that the competent authority was not satisfied with the report and discussed the matter with the Valuation Officer on the same day, i.e., the date on which the report was given. It recorded an interim order on its file on July 4, 1973, stating that the case was discussed with the Valuation Officer who informed the former that there was another plot in the same locality farther away from the town which....