1994 (10) TMI 3

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ear 1976, the flat is in occupation of petitioner No. 1-company which is a sister concern of Gokak Patel Volkart Ltd. On July 23, 1992, the order of amalgamation of petitioner No. 1-company with Gokak Patel Volkart Ltd. was passed by this court. The petitioner-company, while in the occupation of the flat since the year 1976, was reimbursing Gokak Patel Volkart Ltd., the rent of Rs. 1,200 per month together with the society charges which Gokak Patel Volkart Ltd. was required to pay to Farrokh Adi Ghandhy. On March 1, 1983, Farrokh Adi Ghandhy sold the flat to Gokak Patel Volkart Ltd., for a consideration of Rs. 4,00,000. Gokak Patel Volkart Ltd. entered into an agreement dated June 29, 1984, with petitioner No. 1-company to sell the flat ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....competent authority shall initiate the proceedings for acquisition of such property. The petitioner-company filed the requisite statement in respect of the transfer of the flat with the competent authority on September 20, 1984. The competent authority issued a show-cause notice dated May 10, 1985, in exercise of the powers under section 269D(1) of the Income-tax Act. The show-cause notice, inter alia, recites that the competent authority has reason to believe that the fair market value of the property exceeds the apparent consideration by more than 15 per cent. of the consideration of such transfer as agreed between the parties and, therefore, the same has not been truly stated. The show-cause notice further recites that the considerati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The competent authority, at the time of initiation of the proceedings by issuance of the impugned show-cause notice dated May 10, 1985, had prepared a note and the copy of which is annexed at exhibit "A" to the petition. The note recites that the property in dispute is a residential flat situated on the fourth floor of Meharabad Building, Warden Road, Bombay. The competent authority refers to an instance of sale of flat No. F-4, Palacimo, Silver Oake Estate, Bhulabhai Desai Road, Bombay 400 026. The agreement for sale in this instance was executed on February 15, 1984, and the area agreed to be sold was 1,782 sq. ft. built-up and the consideration was Rs. 21,00,000. Relying upon this instance, the competent authority felt that the fair mark....