TMI Blog1996 (5) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... a consideration of Rs. 35,000 as per sale deed registered at No. 77 dated April 24, 1973, with the Sub-Registrar, Narnaul. The building is having a land area of about 5,000 sq. yards and it consists of a number of rooms being used as godown and factories and ten shops facing a road of about 10 ft. wide. It is a single-storeyed building. A reference under section 269L of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), was made to the Valuation Officer, Income-tax Department, Rohtak. The Assistant Valuation Officer, Income-tax Department, Rohtak, vide his report dated December 27, 1973, determined the fair market value of the property at Rs. 39,257 on the "rent capitalisation" method as the whole of the property was in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elled the order of acquisition of the property. The Department being aggrieved by the said order filed these appeals before this court. When the appeals came up for arguments, a short question was argued before us and the appeals could be disposed of on this short question only. The question argued before us was whether by the issuance of Circular No. 455 of May 16, 1986, the appellant could maintain the acquisition of property. The circular issued is as below : " Circular No. 455, dated May 16, 1986. Subject : Acquisition of immovable properties under Chapter XX-A of the Income-tax Act, 1961-Guidelines-Regarding. The Finance Bill, 1986, has proposed that no proceedings shall be initiated under section 269C of the Income-tax Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent consideration of the immovable property is below Rs. 5 lakhs. The interpretation of the above circular has to be made so as to hold whether it will be applicable to the impugned proceedings. Obviously before the circular came into existence, proceedings had come to an end and also the judgment of the Income-tax Appellate Tribunal was before the circular was issued. The question, therefore, is whether these appeals can be deemed to be pending proceedings or not. Learned counsel for the respondent has shown to us a judgment of the Division Bench of this court in Income-tax Appeal No. 1 of 1980 decided on February 20, 1996---CIT v. Export India Corporation (P.) Ltd. [1996] 219 ITR 461. The Division Bench held that the circular does not us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Tribunal/High Court in appeal. It also held that the word "proceedings" occurring in the circular is not qualified by the word "initial". Therefore, the word "proceedings" shall include the proceedings at the appeal stage as well. We agree with the opinion expressed by the learned judges of the Division Bench. We would also like to state that in some matters which are kept pending for some reasons or the other, the initial proceedings would not have attained finality at any stage, in some matter which are expedited, the final proceedings would be over before the circular came into operation. In both such cases, the rights of the assessees had to be decided as per the circular and, therefore, there could be no distinction betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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