Law:

Section:

Section 269C of the Income-tax Act, 1961 - Acquisition of immovable property -Determination of fair market value - Whether while passing an order of acquisition, onus of proving fair market value of property adopted by competent authority would lie on said authority - Held, yes - Whether, where Tribunal had cancelled acquisition order passed by competent authority after proper appraisal of material regarding fair market value relied upon by competent authority, it would be proper to remit case tocompetent authority to collect further evidence and redetermine the matter -Held, no Facts A certain immovable property was sold by the transferor to the transferee for a consideration of Rs. 65,000. The IAC after inviting objections and evidence from them held that the fair market value of the property was Rs. 89,000 which exceeded the apparent consideration by more than 25 per cent and, accordingly, directed acquisition of the property under section 269P(6). On appeal, the Tribunal examined the evidence relied upon by the IAC and coming1 to a different conclusion, cancelled his orders. On reference, the revenue, inter alia, sought remission of the case to the IAC for collecting fresh evidence. Held The Tribunal had correctly stated the legal position that when the competent authority passed an order of acquisition, the onus of proving the market value was squarely on him, and it was, therefore, always necesssary for the competent authority to collect and marshal cogent evidence in support of the fair market value to be adopted by him when he passed an order under section 269F(6). In the instant case, for holding that the fair market value of the property in question exceeded the apparent consideration by more than 25 per cent. the IAC had relied upon certain transactions in certain areas of the city concerned and also on the valuation report furnished by the deparmental valuer. The Tribunal had examined each one of the circumstances and the material evidence on record and come to a different conclusion, which it was entitled to do, giving reasons for the same. There was no error of law in the Tribunal rejecting the circumstances or the evidence on record. An…

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