TMI Blog1983 (10) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... The purchaser was Smt. Palwinder Kaur, wife of Shri Lakhbir Singh resident of Village Chima Khurd, Tehsil Nurmahal, District Jalandhar. The competent authority, having reason to believe, on the basis of the valuation report dated 9-8-1982 that the apparent consideration stated in the sale deed at Rs. 40,000 was understated, initiated proceedings under Chapter XX-A of the Act to acquire the property. He caused proper notices to be issued under section 269D of the Act to the parties and called for their objection against the acquisition on the ground that there was understatement of the apparent consideration. The transferor and the transferee filed objections on 10-9-1962. These objections were examined by the competent authority, but he di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to his submission, the competent authority has reached his finding that the apparent consideration of Rs. 40,000 was understated, on the basis of its valuation by the Valuation Officer at Rs. 1,12,000. Referring to the Valuation Officer's report, he pointed out that this report was made in haste without a proper appraisal of relevant facts and documents. The Valuation Officer, himself, has mentioned that the case was getting time barred and, therefore, he prepared the exparte valuation, although the transferee had not responded to the notice nor has caused the relevant documents to be produced. What could be the utility of such a valuation, which was based on total ignorance about the relevant factors and documents, which had not been br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch a valuation report to be a reasonable approach to the issue of its valuation. He has not described the site nor given arty site plan to find out where the plot was situated. He has applied the highest rate prevailing in this area. Not all plots will carry the same rate. It is only those plots which were advantageously situated on the main highway with a lot of potentiality will alone go for the highest rate. But those plots, which are situated in a bylane or at its fag end, will not get the same rate. The Valuation Officer has ignored these basic aspects, which should have been taken into account in valuing the property. He has not even considered whether the house was a single storeyed or double storeyed. Similarly, the sale instances, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made without obtaining proper data and also the relevant documents. The Valuation Officer found that time was running out for taking action and, therefore, he dished out a report without collecting the relevant documents. In reaching the valuation, the Valuation Officer ignored to properly appreciate the facts that the transferor had dismantled a portion of the house property after purchase and incurred heavy expenditure in filling the land in evaluating the property. He did not take into consideration the age or the kind of the construction of the building. He did not take into account the shape or the particular situation of the plot on which the building stood. He did not even refer to such a relevant information as the covered area ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ective satisfaction of the objective facts stated above. The reasons for the formation of the belief' must have a rational and direct connection with the material coming to the notice of the competent authority . . . ." As has been brought out in this decision as well as by the Calcutta High Court in the case of Jai Kumar Kankaria v. Competent Authority [1981] 130 ITR 593 that 'the presumptions available in sub-section (2) of section 269C are not available to the competent authority at the time of the formation of his belief as will appear from the following extracts : ". . . The language of the relevant provisions of sections 269C and 269D makes it clear that the 'proceeding under this Chapter' does not refer to a stage before a notice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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