TMI Blog1976 (11) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... e, Rs. 23,000 for 25/100 share, Rs. 25,760 for 28/100 share and Rs. 17,480 for 19 /100 share, respectively, to Khushal Chand, Prem Chand, Jagdish Lal and Abinashi Lal. On September 6, 1973, the Inspecting Assistant Commissioner of Income-tax, Acquisition Range, Amritsar (hereinafter referred to as the " competent authority "), initiated acquisition proceedings in respect of each of the sales referred to above on the ground that the fair market value of the property relating to each of the sales exceeded the apparent consideration thereof by more than 15%. While doing so, he relied upon the report of Shri P. N. Rao, valuation officer, who fixed the value of this property at Rs. 1,80,000 calculated at the rate of 20 times the annual rent of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble. The revenue has come up in appeal before us. The principal argument raised by Shri D. N. Awasthy, the learned counsel for the revenue, is that the Appellate Tribunal should have determined the fair market value of the property in dispute on the basis of the cost of land and the building. He has further submitted that the transferee-respondents themselves relied upon a report of the valuer which indicated the cost of the property at Rs. 1,20,360 when calculated on this basis. Since this value showed a difference of more than 15% between the fair market value of the property and the apparent consideration, the Appellate Tribunal was not justified in reversing the order passed by the competent authority. The learned counsel also relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ine the fair market value of the property on the basis of the cost of the land and the building alone and by no other method. We are, however, unable to accept this broad proposition enunciated by the learned counsel, for, in that very case, the Supreme Court observed as under : "It cannot be laid down as a general rule applicable to all situations and circumstances that a multiple approximately equal to the return from gilt-edged securities prevailing at the relevant time forms an adequate basis for finding out the market value of the land. But in this case the trial court and the High Court were of the view that a multiple based on a return from the gilt-edged securities was the approximate multiple for determining the value of the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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