| Case ID |
441f4de9-4ea7-4010-a4d0-8e2531527210 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The appeal was allowed, and the orders impugned were set aside. The court ruled that the proceedings for acquisition were invalid due to the failure to notify the acquisition within the prescribed period. The court emphasized that there was no clear evidence that the market value of the property exceeded the apparent consideration by more than 25%. Therefore, the order for acquisition was set aside, and no costs were awarded. |
| Summary |
In this landmark decision by the Bombay High Court, the case revolves around the acquisition of a tenanted property under section 269F(6) of the Income-tax Act, 1961. The court examined the validity of the acquisition order passed by the competent authority, which was contested on grounds of inadequate notification timing as required by section 269D. The court highlighted that the proceedings were vitiated due to the late publication of the Gazette notification, which was made available to the public only after the nine-month period following the sale. The case further discussed the valuation of the property, where the purchase was recorded at Rs. 2 lakhs, but the notional value was argued to be Rs. 2,66,000 owing to the liabilities towards tenants. The court concluded there was insufficient evidence to establish that the market value exceeded the stated consideration by the required threshold, thus leading to the decision to set aside the acquisition order. This case underscores the importance of adhering to procedural requirements in property acquisition cases, particularly regarding timely notifications and market value assessments. |
| Court |
Bombay High Court
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| Entities Involved |
Not available
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| Judges |
Masodkar, J.,
R.R. Jahagirdar, J.
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| Lawyers |
N.H. Gursahani,
Mrs. Shobha Jagtiani,
Harish Jagtiani,
S.G. Page
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| Petitioners |
Manu Bharati Co-operative Housing Society Ltd.
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| Respondents |
Commissioner of Income Tax
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| Citations |
1986 SLD 2482,
(1986) 162 ITR 693
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| Other Citations |
All India Reporter Ltd. v. Competent Authority, IAC [1986] 162 ITR 697 (Bom.)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
269F(6),
269D,
269C(2)(a)
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