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TMI Blog2010 (7) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi for which show cause notice was given. Thereafter, orders dated 30th March, 1989 were passed acquiring the said property. The said property belonged to Shri Chander Mohan Singh and Smt. Amrit Kuar and vide sale deed dated 25.9.1996 it was sold to Shri Shyam Sarup Dua and Smt. Chander Kanta Dua. Consideration stated in the sale deed was Rs. 15 lacs. According to the Competent Authority, the value of that property was Rs. 30 lacs and because of this reason, he initiated the proceedings for acquisition. The defence of the respondent was that the sale of the said property was almost a distress sale. It was pointed out that the transferees belonged to Sikh community and because of the riots which took place in October, 1984, the transferee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Tribunal. The respondents have succeeded inasmuch as vide orders dated 31st August, 1989, the appeal of the respondents is allowed accepting the value of the property in question as Rs. 15 lacs in the given circumstances as explained above. We may also note that the Tribunal has set aside the process of initiation of acquisition proceedings also on the ground that there was no valid reasons to believe that fair market value of the property in question was Rs. 30 lacs as determined by the Competent Authority. The Tribunal has dealt with all these aspects in the following terms:- "13. There is yet another way of looking at the things. For initiation of proceedings for acquisition and for ultimate acquisition of the property for the fair ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the house at Ludhiana and the sum of Rs. 3,00,000/- added together are substantially less than Rs. 30,00,000/- it cannot be said that the consideration has been under-stated. Therefore, in our view it was necessary for the Competent Authority to determine the fair market value of the Ludhiana property as well. Unless that was done we would not know whether the fair market value of the Ludhiana property and a sum of Rs. 3,00,000/- taken together are equal to the fair market of the Delhi property or more or are less. The mere fact that the parties estimated the value of the Ludhiana house at Rs. 12,00,000/- is not of any consequence when the competent Authority does not rely on the estimate of these parties about the Delhi property. When a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ept., 1986 and another property being a house No. 37/44, measuring 275.44 sq.yds sold for Rs. 7,00,000/-. Both these properties are much smaller properties and as laid down in Mani Singh Avtar Singh Vs. I.A.C. (1985) 151 I.T.R. 233 sale instances. Therefore, that was not a material on the basis of which a reasonable person could have a reason to believe that the fair market value of the property in question exceeded the apparent consideration by more than 15 per cent. We, therefore, hold that the initiation of the proceedings under Section 269-C itself was bad." 3. We are in agreement with the aforesaid approach of the Tribunal. These appeals are without any merit and accordingly dismissed. (A.K. SIKRI) JUDGE (REVA KHETRAPAL) JUDGE J ..... X X X X Extracts X X X X X X X X Extracts X X X X
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