9911796707
TMI Blog1975 (12) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 35,000. The Inspecting Assistant Commissioner, Acquisition Range of Bhubaneswar, initiated proceedings under section 269C of the Act on the footing that he as competent authority had reason to believe that the transfer by the appellant's vendor to the appellant was for an apparent consideration which was less than the fair market value of the property and that the consideration for the transfer as agreed to between the parties had not been truly stated in the sale deed with the object of facilitating the reduction or evasion of the liability of the transferor to pay tax under the Act in respect of any income arising from the transfer or facilitating the concealment of any income or any moneys or other assets which have not been or w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acilitating the reduction or evasion of the liability of the transferor to pay tax under this Act in respect of any income arising from the transfer ; or (b) facilitating the concealment of any income or any moneys or other assets which have not been or which ought to be disclosed by the transferee 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchases by the appellant's vendor in 1969 was not one in ordinary course of business. As already stated, 86 cents had been purchased for Rs. 35,000. We are concerned with determining the valuation of about 54 cents. The proportionate value of 54 cents in March, 1969, would have worked out at roughly Rs. 22,000. The value fetched for the impugned transaction is Rs. 48,500, i.e., more than twice the amount which would have been paid for the land in 1969. Undoubtedly, there has been a considerable rise in price of land judicial notice can also be taken of the fact that with growing industrialization in the outskirts of cities like Berhampur, there is an escalation in the price of land. " Market value " has no definition under the statute. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer divided the area into developed, developing and undeveloped or underdeveloped sections. It appears from a sketch map of the area placed on the record that the plot of land in question is situated on the northern side of the Aska Road which has been put under developing area. The areas on the south of the Aska Road come within the classification of developed area. The valuation officer as also the Appellate Tribunal have mainly relied upon two sale transactions of August, 1973. The first sale deed is dated August 1, 1973, under which out of Survey No. 224 located in the immediate vicinity of the Aska Road to its south opposite the land in question, about half a gunth of land has been sold for a little more than Rs. 3,500, a gunth bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lassified as less valuable than the property in question. Survey No. 56 admittedly is located near about. Two sale deeds of 1974 in respect of about two gunths and 1 1/2 gunths in size have been relied upon on the side of the appellant where the valuation per acre ranges bet. ween Rs. 60,000 and Rs. 66,000. These are portions of Survey No. 56. We are alive to the position that Survey No. 56 is behind the disputed plot and, therefore, the valuation per acre on the basis of these transactions must be suitably enhanced to get the valuation of the disputed land. Ordinarily, an enhancement of fifty per cent. would meet the purpose. Therefore, on the basis of the sales made in 1974, that is, about a year after the disputed transaction, valuation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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