Law:

Section:

Section 269C of the Income-tax Act, 1961 - Acquisition of immovable property - Proceedings for - Whether burden lies on revenue to prove and establish that apparent value adopted in sale deed falls short of fair market value by more than fifteen per cent - Held, yes - Whether, therefore, where revenue failed to establish said fact, order under section 269F(b) could not have been made - Held, yes FACTS The appellant purchased the property in question for Rs. 48,500. The IAC, Acquisition initiated proceedings under section 269C 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. The appellant furnished his objection and placed for consideration of competent authority a valuation report obtained from an expert. The official valuation officer valued the property at Rs. 94,300 while the registered valuer engaged by the appellant determined the valuation at Rs. 47,000. The competent authority made an order in terms of section 269F(6) for acquisition of the property. On appeal, the Tribunal held that the fair market value of the property would be Rs. 65,000. Yet, the order of acquisition was sustained as even on that basis the statutory acquisition could be made. On appeal : HELD 'Market value' has to definition under the statute. Therefore, its meaning under other comparable laws can be adopted as guideline for this purpose. In the instant case, the valuation officer divided the area into developed, developing and undeveloped or underdeveloped sections. It appeared from a sketch map of the area placed on the record that the plot of land in question was situated on the northern side of the road which had been put under developing area. The areas on the south of the road come within the classification of developed area. The valuation officer as also the Tribunal had mainly relied…

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