Full Judgment Text
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CASE NO.:
Appeal (civil) 6056 of 1998
PETITIONER:
DY. COMMISSIONER OF INCOME TAX & ORS.
Vs.
RESPONDENT:
EXPRESS TOWERS P. LTD. & ORS.
DATE OF JUDGMENT: 10/05/2001
BENCH:
S. Rajendra Babu & K.G. Balakrishnan
JUDGMENT:
RAJENDRA BABU, J. :
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By an agreement made on 21.5.1987, property bearing No.
B- 7/118, Safdarjung Enclave Extension, New Delhi, measuring
about 375 sq. meter was offered to be sold for a sum of
Rs.23.50 lakhs. On an application being made in Form 37(I)
before the Appropriate Authority as required under Section
269 UC of the Income Tax Act, 1961 [hereinafter referred to
as the Act], the Appropriate Authority proceeded to take
into consideration three instances of sale made in respect
of property bearing No.B-1/16, Hauz Khas, New Delhi in
February 1987; of property bearing NO.J-10, Green Park, New
Delhi and B-2/2, Safdarjung Enclave, New Delhii in February
1987. The average of three sale instances was taken into
account to work out the land rate of Rs.7,850/- per sq.
mtr. and it was concluded that the fair market value of the
property in question was over the apparent consideration
disclosed by 28.5 per cent. On that basis proceeded to
acquire the property for the Union of India, rejecting the
explanation offered by the transferor that he was desperate
to sell the property in order to go abroad and settle with
his only daughter in U.S.A. and that the sale instances are
of incomparable properties in different areas and the
adjustment can arise in cases where there is basic
similarity between two properties. However these reasons
appealed to the High Court on challenge made to the order of
acquisition and the same was quashed. Hence this appeal by
special leave.
The High Court in examining the matter has considered
the various aspects in true perspective. The value of the
property either with reference to the apparent consideration
or the fair market value determined by the Appropriate
Authority is not of such magnitude as to call for any
interference. We are of the view that this is not a fit
case in which interference is called for.
The appeal, therefore, stands dismissed. However, there
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shall be no order as to costs.