TaxTMI 
TaxTMI 
1985 (3) TMI 313
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1961) ("the Act"). 2. An immovable property bearing No. 1011/44, situated on Ist Main Road, IV Block, Rajajinagar, Bangalore-10, was owned by Smt. Girijamma (transferor). On August 3,1973, the said transferor, under a registered instrument of transfer, transferred the said property to Sriyuths B. M. Byrappa, B. C. Hanumanthappa, B. M. Marappa and B. V. Nagaraj of Bangalore (transferees) for a consideration of ₹ 80,000. 3. On February 1, 1974, the Inspecting Assistant Commissioner recorded his reasons under section 269C of the Act to the effect that the fair market value of the property exceeded the apparent consideration by more than 15% and directed the issue of notices on the same day under section 269Dof the Act. While....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on them even before the publication of the notice in the Official Gazette was an invalid assumption of jurisdiction by the Inspecting Assistant Commissioner and the completion of proceedings for acquisition were void at law and invalid. On allowing the said additional ground to be urged, the Tribunal by its order dated June 30, 1975, has accepted the same and has allowed the said appeals, however, holding against them on the fair market value of the property acquired by the Inspecting Assistant Commissioner. 6. Aggrieved by the finding recorded by the Tribunal on the fair market value of the property, the transferees have filed ITA Nos. 1 to 4 of 1976 before this court under section 269H of the Act. Aggrieved by the same order of the Tribu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nder section 269D(1) of the Act in the Official Gazette vitiates the jurisdiction of the Inspecting Assistant Commissioner and the order made by him thereto under Chapter XX-A of the Act ? (ii) Whether the authorities functioning under the Act are required to regulate the acquisition of the property under Chapter XX-A of the Act in accordance with the terms and conditions of the circular instructions dated November 27, 1975, issued by the Board ? (iii) Whether the determination of the fair market value of the property by the Tribunal and the Inspecting Assistant Commissioner are legal and valid ? 10. We will deal with them in their order. 11. Re : Point No. 1. - Sri Srinivasan contends that the Tribunal committed an error of law in allo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r instructions thereunder did not arise. But the Board, with due regard to the later enactment, has issued circular instructions on November 17, 1975, which it was competent to do under the Central Boards of Revenue Act, 1963 (Act No. 63 of 1963), under which it has been constituted as also section 119 of the Act which are binding on all the authorities functioning under the Act. 18. The circular issued by the Board on November 27, 1975, reads thus : "F. N. 283/1/75-IT (INV) GOVERNMENT OF INDIA CENTRAL BOARD OF DIRECT TAXES New Delhi, the 27th November, 1975. A copy of the Press Note explaining the circumstances under which the acquisition proceedings initiated under Chapter XX-A of the Income-tax Act would be dropped in cases whe....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the transferor and the transferee admit payment of consideration approximating to the fair market value of the property estimated by the competent authority and each of them makes a declaration under the Ordinance disclosing an amount equal to the difference between : - (i) the apparent consideration plus 15% thereof; and (ii) the fair market value estimated by the competent authority." 19. This general circular issued by the Board is undoubtedly binding on all the authorities under the Act. We are exercising our powers in these cases as an appellate authority under the Act and, therefore, we are bound to take note of the subsequent events and the circular instructions issued by the Board and regulate these appeals on that basis.....