Law:

Section:

Section 269 of the income-tax act, 1961-Acquisition of immovable properties-Conditions precedent for initiating acquisition proceedings-Whether instance of sale of property in neighbourhood could be disregarded because of remoteness in point of time-Held, no-Whether competent authority bound to give proper opportunity to all concerned to adduce evidence or rebut evidence collected by him-Held, yes, as acquisition proceedings were quasi-judicial warranting application of principles of natural justice Facts The IAC initiated, on 7-11-1974, acquisition proceedings, under section 269D, in respect of two immovable properties, comprising buildings and lands, sold under two separate registered sale deeds, dated 11-4-1974, for considerations of Rs. 7,28,166 and RS. 12,18,584, respectively, which worked out to about Rs. 410 per sq. yd. These proceedings were a sequel to report, dated 19-101974, of the District Valuation Officer, who estimated their fair market value at Rs. 14,12,800 and Rs. 23,87,200, respectively, on the basis of two instances of sale of small plots of land by Ahmedabad Municipal Corporation at Rs. 2,655 per sq. yd. The Valuation Officer duly considered the situation and size of these plots as also the irregular shape of the lands in question and estimated the fair market value at Rs. 800 per sq, yd. In the course of the proceedings, the IAC came across two more instances of sale of land in the neighbourhood representing sale to Life Insurance Corporation (LIC) in March 1967 at Rs. 365.50 per sq. yd. He conveyed the particulars thereof to the transferors to substantiate his view that the apparent consideration in the cases of properties sought to be acquired was far below their fair market value. The transferors and the transferees objected to consideration of the sales to LIC as these were not relied upon for initiation of acquisition proceedings and were merely an after-thought. They also urged for issue of summons to the transferors and the LIC officers so that they could cross-examine them to show that these sales were not between willing sellers and willing purchasers and that these could not be considered as comparable instances because these…

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