M.R.SHARMA,J. - (1.) THIS judgment will dispose of Income-tax Appeals Nos. 6, 6a-2, 9 and 5 of 1975, as common questions of law and fact arise therein.
(2.) BY four separate registered sale deeds dated March 25, 1973, Mohan Lal, Ram Sarup, Ram Lal and Daulat Ram sold their shares in the property comprising 8 shops and 5 sheds situated in the Industrial Area, Batala Road, Amritsar City, for a sum of Rs. 25,760 for 28/100 share, Rs. 23,000 for 25/100 share, Rs. 25,760 for 28/100 share and Rs. 17,480 for 19/100 share, respectively, to Khushal Chand, Prem Chand, Jagdish Lal and Abinashi Lal. On September 6, 1973, the Inspecting Assistant Commissioner of Income-tax, Acquisition Range, Amritsar (hereinafter referred to as the "competent authority"), initiated acquisition proceedings in respect of each of the sales referred to above on the ground that the fair market value of the property relating to each of the sales exceeded the apparent consideration thereof by more than 15%. While doing so, he relied upon the report of Shri P. N. Rao, valuation officer, who fixed the value of this property at Rs. 1,80,000 calculated at the rate of 20 times the annual rent of Rs. 900 per month which this property carried. Before the competent authority the transferees filed certificates of an approved valuer who determined the value of the property in dispute by land and building method at Rs. 1,20,360, and by rent realisation method at Rs. 81,450. The said valuer had fixed the value of the property at Rs. 1,00,900 being the rough mean of the two values. The competent authority came to the conclusion that the difference between the fair market value and the apparent consideration was more than 15% of the apparent consideration and for that reason a presumption in law arose that the consideration as agreed to between the parties for the transfer of the impugned property had been under-stated with the object of evasion of tax. He, accordingly, ordered that the impugned property be acquired under Chapter XX-A of the Income-tax Act, 1961 (hereinafter called "the Act"), after obtaining the approval of the Commissioner.
(3.) THE appeals filed by the transferees were allowed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar, on the ground that the proper way of determining the fair market value of the property was to fix it at 12 times the annual rent after giving a rebate of 6% of "the annual rent for repairs. On this basis, the Tribunal came to the conclusion that the fair market value of the property was Rs. 1,00,224 and since it did not exceed by more than 15% of the apparent consideration, the impugned property was held to be not acquirable.;