TMI Blog2008 (4) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... er. The Appropriate Authority ought to have furnished the copy of the valuation report to the petitioner which was admittedly not done in this case. Hence, the order was clearly violative of the principles of natural justice. The order of pre-emptive purchase was not valid. - 623/93 - - - Dated:- 2-4-2008 - RADHAKRISHNAN S. DR. and DEVADHAR J. P. JJ. Mrs. V.B Patel for the petitioner. R. Asokan with P.S. Sahadevan for the respondents. Judgment: Dr. S. Radhakrishnan J . -By this petition, the petitioners are challenging an order dated February 25, 1993, passed by the Appropriate Authority being respondent No. 1 herein under section 269UD(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act". 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The petitioners had challenged the same by filing Writ Petition No. 223 of 1989, and this court by an order dated December 16, 1992, had set aside the said order and directed the Authority to issue an appropriate notice before passing an order under section 269UD(1) of the Act, relying upon the hon'ble Supreme Court's decision in C. B. Gautam v. Union of India [1993] 199 ITR 530. 4. Pursuant to the said order, on January 1, 1993, respondent No. 1 issued a showcause notice to the petitioners. It is pertinent to note that the respondents in the aforesaid showcause notice, annexed as "reasons" the very same order dated July 26, 1989, which was set aside by this court. Thereafter, the petitioners had made various representations and had al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s referred to and relied upon the judgment in the case of C. B. Gautam v. Union of India [1993] 199 ITR 530 (SC). 6. Mrs. Patel, the learned counsel for the petitioners has also, thirdly, contended that ex facie the impugned order is bad in law inasmuch as the same has been passed without determining the "fair market value" of the property. The learned counsel for the petitioners, fourthly, also pointed out that respondent No. 1 has totally ignored various instances and factual circumstances pointed out by the petitioners in support of the valuation adopted by the petitioners to be fair market value. In the light of the above, Mrs. Patel, the learned counsel for the petitioners, has pointed out that respondent No. 1 has to first determine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r court in Manubhai Shah's case [2008] 303 ITR 66 (Bom). Mrs. Patel, the learned counsel for the petitioners, has brought to our notice that the action of respondents Nos. 1 and 2 is arbitrary and illegal since respondent 1 in respect of other premises in the neighbouring area as referred to in paragraph 61 of the petition as well as premises in the very same building referred to in pages 77 and 85 of the petition, the authorities had accepted the lower rate than the purchase price paid by the petitioners, though they were all during the same period. Mrs. Patel, the learned counsel for the petitioners has also pointed out that the petitioners had brought to the notice of respondent No.1 by their letters dated February 2, 1993 and February 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to state that the apparent consideration is lower than the market value by 15 per cent. or more. 10. A perusal of the impugned order, in the present case, clearly shows that the "fair market value" of the flat in question had not been determined at all, and, therefore, the purchase of the flat in question on the footing that there is undervaluation to the extent of 15 per cent. of the market value cannot be sustained at all, as the same is without any basis. Respondent No. 1 had relied on the valuation report prepared by their valuer. Respondent No. 1 ought to have furnished the copy of the valuation report dated May 22, 1989, to the petitioners which was also admittedly not done in this case. Hence, the impugned order is clearly violat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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