TMI Blog2007 (9) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... DSK Legal, for the petitioners. R. Ashokan for respondents. JUDGMENT The judgment of the court was delivered by J. P. Devadhar, J. - This petition is filed to challenge theorder dated February 25,1993, passed by the appropriateauthority under section 269UD(1) of the Income TaxAct, 1961 ('the Act' for short). 2. The facts relevant for the present petition are that the by an agreement dated 30th May, 1987 the petitioners agreed to purchase from the respondent No.4 Flat No.111, situated at Warden Road, Mumbai - 400 026 for a consideration of Rs.40 lakhs. On an application made in Form 37-I, the appropriate authority under Income Tax Act passed a purchase order on 20th August, 1987 under section 269UD(1) of the Act without g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s relating to the sale instances referred to in the show cause notice, the impugned purchase order was passed on February 25, 1993. Challenging the said order the present petition is filed. On July 7,1993 the Writ Petition was admitted and interim order was granted thereby restraining the respondents from taking any further steps in implementation of the impugned order. 7. Mr. Mistry learned counsel appearing on behalf of the petitioners submitted that the impugned order is liable to be quashed and set aside because, firstly, no fair market value of the flat has been determined so as to arrive at a conclusion that in the present case the under valuation was to the extent of 15%. Secondly, the advantages/disadvantages of the flat in ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of Chapter XX-C can be resorted to only when there is significant under valuation in the agreement of sale with a view to evade tax. As held by this Court in the case of Vimal Agarwal [1994] 210 ITR 16 in order to draw inference of undervaluation, it is necessary to determine first the fair market value of the property in question in the light of all the attending circumstances. Without doing so, it is not only difficult but impossible to say that the apparent consideration is lower than the fair market value by 15%. In the present case, admittedly the fair market value of the flat in question has not been determined as a result whereof it could not be said that there is undervaluation to the extent of 15%. 10. Apart from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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