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2010 (7) TMI 700 - HC - Income TaxReassessment - Acquisition of immovable property - on the ground that the approach of the competent authority in its reasons to believe was manifestly incorrect and opposed to law, it would be apposite to refer to and deal with this aspect, in the first instance - It is subsection (2) of section 269C which stipulates that where the fair market value exceeds the apparent consideration by more than 25 per cent., it shall be a conclusive proof that the consideration for such transfer as agreed to between the parties has not been truly stated in the instrument of transfer - In the instant case, since the consideration shown in the sale deed was Rs. 16 lakhs, action could be initiated only if the competent authority had reasons to believe that the fair market value is Rs. 18,40,000 or above - The very fact that even according to the competent authority, the only reason for doubling the rates of residential property for arriving at the fair market value in respect of residential-cum-commercial property is "it is well known" and that itself suggests that there was no material much less tangible material and the competent authority was going by general perception - When the very basis of fixing the said market value is erroneous and without any foundation, raising such an argument that the value fixed is more than 25 per cent. would be clearly preposterous - Appeal is dismissed
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