1982 (10) TMI 34

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.... the spot. After making enquiry, he estimated the market value of this property as on the date of transfer to be Rs. 48,000. The competent authority, thereafter, referred the matter under s. 269L of the Act to the Valuation Officer at Kanpur. The Valuation Officer estimated the value at Rs. 50,050 on the basis of the land and building method and at Rs. 49,000 on yield and rental method. For the other portion, which was sold to Smt. Phoolmati, the valuation estimated was at Rs. 49,800. Upon being satisfied and after recording reasons under s. 296C of the I.T. Act, the competent authority initiated proceedings for acquisition. The reasons given by the competent authority were: (i) that the fair market value of the property was between Rs. 49,000 and Rs. 49,800 ; (ii) that the fair market value exceeded the apparent consideration by more than 15%; (iii) that the consideration for the property had not been truly stated in the transfer deed with the object of facilitating the reduction or evasion of tax including capital gains. Consequently, a notice under s. 269D(1) of the I.T. Act was issued to the transferor and the transferees. The transferor, Om Prakash Gupta, did not f....

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....;                                                      Rs.  Gross annual income from rent                       455 x 12      5,460  Less :        (a) Municipal tax at 17.5% of Rs. 5,460       956        (b) 1/6th for maintenance 910        (c) 6% for management and collection charges  327        (d) Insurance                                  34           2,227      &nbsp....

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....sp;          830        (c) 6% for management and collection charges  299        (d) Insurance                                  34          2,034                                                      ---          -----  Net annual income                                                2,946      ....

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....d been adopted by the Government valuer himself. On applying this multiplier, the valuation of the house worked out to Rs. 4,366 whereas it was 3,600. That being so, the finding of the Tribunal, that s. 269C(1) did not apply to this portion of the house, cannot be said to be erroneous or wrong. As the method applied for finding out the valuation was legally permissible, no objection could be taken to the same. We, therefore, find that the Tribunal did not commit any error of law that this portion of the house had wrongly been ordered to be acquired by the competent authority. Coming to the portion of the house in dispute purchased by Asharfi Lal Gupta, the difference between the fair market value and the apparent consideration exceeded by more than 25%, hence, this sale came within the clutches of s. 269C(2)(a) of the I.T. Act. This sub-section lays down presumption in such a case of conclusive nature about the transfer deed having not stated the true price. However, s. 269E(3) affords an opportunity to the person concerned to lead evidence for showing that there was no untrue statement of the consideration in the sale deed. In the instant case, the argument raised on behalf of ....