TMI Blog1985 (3) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. An immovable property bearing No. 1011/44, situated on Ist Main Road, IV Block, Rajajinagar, Bangalore-10, was owned by Smt. Girijamma (transferor). On August 3,1973, the said transferor, under a registered instrument of transfer, transferred the said property to Sriyuths B. M. Byrappa, B. C. Hanumanthappa, B. M. Marappa and B. V. Nagaraj of Bangalore (transferees) for a consideration of ₹ 80,000. 3. On February 1, 1974, the Inspecting Assistant Commissioner recorded his reasons under section 269C of the Act to the effect that the fair market value of the property exceeded the apparent consideration by more than 15% and directed the issue of notices on the same day under section 269Dof the Act. While the notices issued u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em even before the publication of the notice in the Official Gazette was an invalid assumption of jurisdiction by the Inspecting Assistant Commissioner and the completion of proceedings for acquisition were void at law and invalid. On allowing the said additional ground to be urged, the Tribunal by its order dated June 30, 1975, has accepted the same and has allowed the said appeals, however, holding against them on the fair market value of the property acquired by the Inspecting Assistant Commissioner. 6. Aggrieved by the finding recorded by the Tribunal on the fair market value of the property, the transferees have filed ITA Nos. 1 to 4 of 1976 before this court under section 269H of the Act. Aggrieved by the same order of the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice under section 269D(1) of the Act in the Official Gazette vitiates the jurisdiction of the Inspecting Assistant Commissioner and the order made by him thereto under Chapter XX-A of the Act ? (ii) Whether the authorities functioning under the Act are required to regulate the acquisition of the property under Chapter XX-A of the Act in accordance with the terms and conditions of the circular instructions dated November 27, 1975, issued by the Board ? (iii) Whether the determination of the fair market value of the property by the Tribunal and the Inspecting Assistant Commissioner are legal and valid ? 10. We will deal with them in their order. 11. Re : Point No. 1. - Sri Srinivasan contends that the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner decided the cases, the 1976 Act had not been enacted and the Board issuing circular instructions thereunder did not arise. But the Board, with due regard to the later enactment, has issued circular instructions on November 17, 1975, which it was competent to do under the Central Boards of Revenue Act, 1963 (Act No. 63 of 1963), under which it has been constituted as also section 119 of the Act which are binding on all the authorities functioning under the Act. 18. The circular issued by the Board on November 27, 1975, reads thus : F. N. 283/1/75-IT (INV) GOVERNMENT OF INDIA CENTRAL BOARD OF DIRECT TAXES New Delhi, the 27th November, 1975. A copy of the Press Note explaining the circumstances under which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... co-operate fully in the matter of assessment of the transferor; and (c) he agrees that the affidavit may be utilised in the assessment of the transferor. or the transferor and the transferee admit payment of consideration approximating to the fair market value of the property estimated by the competent authority and each of them makes a declaration under the Ordinance disclosing an amount equal to the difference between : - (i) the apparent consideration plus 15% thereof; and (ii) the fair market value estimated by the competent authority. 19. This general circular issued by the Board is undoubtedly binding on all the authorities under the Act. We are exercising our powers in these cases as an appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he principles enunciated in Premchand's case [1985] 153 ITR 774 (Kar), on the valuation of properties for which purpose it becomes necessary to vacate the findings of the Tribunal and the Inspecting Assistant Commissioner on this aspect. 22. In the result, we make the following orders and directions - (i) We allow these appeals, set aside the orders of the Tribunal and the Inspecting Assistant Commissioner. 23. (ii) We remit the cases to the Inspecting Assistant Commissioner with a direction to him to restore the proceedings to its original file and redetermine the proceedings initiated by him with due regard to the orders to be made by the Commissioner on the applications made by the appellants under the 1976 Act, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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