TMI Blog1983 (9) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant facts are that the plot, measuring approximately 16 marlas (3,360 square feet), was sold by M/s. Guru Nanak Public Welfare Trust, Milap Chowk, Jullundur, to M/s. Amrit Sports Industries, Basti Nau, Jullundur, the respondent, for a sum of Rs. 40,000, vide registered sale deed No. 3809 dated September 8, 1977. Shri Nirmal Singh, Inspector, made his report dated April 20, 1978, to the effect that the plot in dispute was of the market value of Rs. 1,32,000 on the date of the sale. The Competent Authority initiated the proceedings under s. 269C of the Act. The relevant notice was published in the official Gazette on June 3, 1978. It appears, in the meantime, the respondent had built some shops on the plot in question and had let them ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x under Chapter XX-A of the Income-tax Act, 1961, is complete by the publication of the notice in the Official Gazette under s. 269D(1) of the said Act ? and, (ii) Whether, the transferee though himself personally served with an individual notice under section 269D(2)(a) of the Income-tax Act, 1961, can assail the said acquisition proceedings on the alleged non-service on any other person or persons interested in the said property ? " Both these questions were answered by the Full Bench ([1983] 144 ITR 113) in the following terms (p. 126): "To finally conclude, the answer to question No. (i) formulated at the outset is rendered in the affirmative and it is held that under s. 269D of the Act, the initiation of proceedings for acquisiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gally valid material apart from the conjectures and surmises, which had led to the finding about the existence of the objects specified in cl. (a) or (b) of s. 269C(1) of the Act. In support of this contention, the learned counsel relied upon U. S. Awasthi v. IAC [1977] 107 ITR 796 (All), CIT v. Vimlaben Bhagwandas Patel L1979] 118 ITR 134 (Guj) and G. V. Swaika Estate (P.) Ltd. (Rai Bahadur) v. M. N. Tewari [1980] 126 ITR 310 (Cal). On the other hand, the learned counsel for the respondent argued that the objection as to the jurisdiction of the Competent Authority could be taken at any time and that the learned Tribunal rightly allowed the same to be raised at the appellate stage. Besides, argued the learned counsel, as a matter of fact, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the objection as to the jurisdiction of the Competent Authority to initiate the proceedings could be taken up in appeal or not, the same stands settled. In Vijay Kumar Jain's case [1975] 99 ITR 349 (P H), it was held by the Division Bench of this court that if the notice issued under s. 148 of the Act was invalid for any reason the entire proceedings taken by the ITO would be void for want of jurisdiction. In that situation, the Tribunal was not justified in refusing to consider the validity of the notice under s. 148 even though the ground challenging the same had not been pressed before the AAC. Apart from that, in the present case, we further find that such an objection was raised on behalf of the respondent in the objections filed, bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the purposes of the Indian Income-tax Act, 1922 (11 of 1922), or this Act or the Wealth-tax Act, 1957 (27 of 1957), the Competent Authority may, subject to the provisions of this Chapter, initiate proceedings for the acquisition of such property under this Chapter: Provided that before initiating such proceedings, the Competent Authority shall record his reasons for doing so: Provided further that no such proceedings shall be initiated unless the Competent Authority has reason to believe that the fair market value of the property exceeds the apparent consideration therefor by more than fifteen per cent. of such apparent consideration. " Thus, it is evident that the conditions precedent for the exercise of the jurisdiction to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority on the report of the inspector, dated April 20, 1975, passed the following order : Seen. Initiate action. (Sd./-) 28/4. Admittedly, no reasons whatsoever were given by the Competent Authority before initiating the proceedings as required by the statute. To say that since the orders were passed on the basis of the report as such by the Competent Authority and he initiated the proceedings on the basis of the said report, is nothing but violating the statutory requirements as provided under s. 269C(1) of the Act. It is for the Competent Authority to believe that there exist reasons to conclude that the consideration for the transfer as agreed to between the parties had not been truly stated in the instrument of transfer with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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