TMI Blog1994 (4) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... arch 9, 1993. It is submitted that the notice was issued by the District Valuation Officer (appropriate authority) both to the transferee and the transferor, but no such notice was received by the transferee. In the said notice, the transferor and the transferee were called upon to submit the documents on or before March 29, 1993, and to allow inspection of the property on March 30, 1993. The transferor submitted the documents as well as the report of the authorised valuer under the Income-tax Act dated April 9, 1993. Thereafter, notice under section 269UD(1) of the Income-tax Act dated May 21, 1993, was sent to the transferor as well as the transferee which was received by both of them on May 26, 1993. In the said notice, it was mentioned that the apparent consideration was lower than the market value and for that purpose the sale of property D-37, Sawai Madho Singh Road, Bani Park, at the rate of Rs. 3,896 per sq. metre by auction on October 3, 1991, was taken into consideration. For the time-gap, increase by 25 per cent. was sought to be made and, therefore, the value of the present property at the rate of Rs. 4,870 per sq. metre was calculated at a figure of Rs. 46,47,000. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... UJ of the Act was made on June 13, 1993, on the ground that proper opportunity was not given inasmuch as the notice itself was received on May 26, 1993, fixing the date for May 31, 1993, and also that the principles of natural justice require that a copy of the sale deed and map of plot No. D-37 as requested in the letter dated May 29, 1993, be provided and, therefore, there was denial of the principles of natural justice. The agreement dated March 11, 1992, was also stated to have been executed and not produced earlier as the transferee had no reasonable opportunity of being heard. It was also stated that the order dated May 31, 1993, has cast a slur on the transferor as well as the transferee and that the valuation of the present property cannot be compared with plot No. D-37. The reduction of the price by 25 per cent. on the basis of the theory and practice of valuation by Roshan Nanawati was claimed on the ground that the present plot was behind plot No. D37 having main approach road. The report of the District Valuation Officer (appropriate authority) is said to be not placed on record and the valuation report of K. N. Bhargava was ignored. The fact that plot No. D-37 is havin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. It is also not an error apparent in the order of the appropriate authority and the order passed by the appropriate authority under section 269UD(1) cannot be said to be illegal for that reason. If it is permitted that the transferor or the transferee may after passing the order under section 269UD(1) are entitled to place any material on record, then it may lead to even production of a document which was not initially in existence and a fraud may be perpetuated. The contention of learned counsel now to consider the said agreement dated March 11, 1992, therefore, has no force. Another objection which has been raised before me is that reasonable opportunity was not given. The question what amounts to reasonable opportunity is a question of fact and in a given circumstance even 4 or 5 days' time may be considered as having been given reasonable opportunity. No doubt when the Act has contemplated the time-bound programme, the respondents must have taken the proceedings expeditiously but if 5 days' time was given, it cannot be said to be unreasonable. Even no ground has been shown in the petition and when the notice was received by the transferor as well as the transferee on May 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case the document on which reliance was placed by the Income-tax Officer for holding that there was no genuine firm in existence was not disclosed to the firm and no explanation, therefore, could have been offered. Since no reasonable opportunity was at all given, it was held in that case that it offended the principles of natural justice. It can, therefore, not be said that reasonable opportunity was not given to the petitioners in this case. As aforesaid, in the copy of the valuation report of the approved valuer dated April 9, 1993, the reference to plot No. D-37 is there and the valuation of plot No. D-37 was done. From the total sale value, the cost of the structure of Rs. 7,06,000 was reduced and the land rate was calculated after such reduction at the rate of Rs. 2,840 per sq. yard. According to the respondents the cost of structure of plot No. D-37 was taken at Rs. 3,896 per sq. metre. For the purpose of acquisition under Chapter XX-C of the Act, the appropriate authority is not bound to take the figure given by the approved valuer. This is besides the fact that the said report was not before the appropriate authority. The object of bringing Chapter XX-C in the statute b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment. The determination of the market value by the appropriate authority is a sine qua non. If they are satisfied that the property is having a high market value, then the seller is not affected at all and he will get the price in accordance with the time bound programme in the Chapter. There is no delay so far as the seller is concerned. So far as the purchaser is concerned, he has to point out the reasons and if he fails to satisfy, then it is the satisfaction of the appropriate authority on the basis of which the property is acquired and the failure to produce satisfactory evidence by such purchaser is not a slur or stigma but it is his inability. The action which is being taken by the respondents is not mala fide but it is in public interest so that the consideration for the sale is correctly shown in the agreement of sale. The acquisition of the property has the effect on other prospective buyers and sellers dissuading them not to enter into such agreements showing lesser consideration which may result in the acquisition of the property and thus if the property is acquired by the Government under the provisions which have been made in the Chapter it cannot be said to be a sl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... meaning of the reserve price is that the JDA will not allot the land at a price lower than the reserve price, but sale consideration is always different. This contention too has no force and is rejected. The various facts which have been taken into consideration by the appropriate authority cannot be said to be without any basis. The order which is subject to judicial review is limited only to the extent of examining as to whether any finding is perverse or there is non-application of mind or the order is contrary to the established principles of law. The order even if it could be categorised to be arbitrary it could be examined but it cannot be said in the facts of the present case that there was any arbitrariness or that the order suffers from any defect warranting interference by this court under article 226 of the Constitution. This court is not sitting in appeal over the order passed by the appropriate authority and the satisfaction has to be arrived at by the appropriate authority on the basis of the valuation report and relevant documents which have been taken into consideration. Even the argument with regard to reasonable opportunity has been found not sustainable and as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
