Punjab-Haryana High Court
Commissioner Of Income-Tax vs Gursher Singh And Anr. on 18 November, 1996
Equivalent citations: [1997]225ITR725(P&H)
Author: B. Rai
Bench: B. Rai
JUDGMENT G.S. Singhvi, J.
1. Although these appeals filed under Section 269H of the Income-tax Act, 1961, are directed against different orders passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar, in view of the judgment of this court in CIT v. Export India Corporation (P.) Ltd. [1996] 219 ITR 461, and some other orders passed by this court, to which reference will be made hereafter, we are deciding them by a common order.
2. Appeals Nos. 7, 8 and 9 of 1980 are directed against the order dated July 21, 1980, passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar, whereby the Tribunal accepted the appeals filed by the respondents and quashed the orders passed by the competent authority for acquisition of their properties. Appeal No. 1 of 1981 is directed against the order dated November 7, 1979, passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar, in favour of the respondent--Hardev Singh whereby the order of acquisition passed by the competent authority has been quashed. Appeal No, 7 of 1981 is directed against the order dated January 31, 1981, passed by the Tribunal whereby it accepted the appeal filed by the respondent and quashed the order of acquisition.
3. During the pendency of the appeals, the provisions of the Act of 1961 have been amended. Chapter XX-A has been deleted and Chapter XX-C has been added therein. At the same time, the Central Board of Direct Taxes issued Circular No. 455 (see [1986] 159 ITR (St.) 105), dated May 16, 1986, and declared that acquisition proceedings will not be initiated under Section 269C in respect of an immovable property if the apparent consideration for transfer of the said property is Rs. 5 lakhs or less and where the acquisition proceedings have been initiated by issue of notice under Section 269D, the same will be dropped if the apparent consideration of the immovable property is below Rs. 5 lakhs.
4. In CIT v. Export India Corporation (P.) Ltd. [1996] 219 ITR 461, this court interpreted Circular No. 455 (see [1986] 159 ITR (St.) 105) dated May 16, 1986, and held that the same deserves to be applied to pending appeals filed by the Department against the orders passed by the Income-tax Appellate Tribunal.
5. Following the decision of the Division Bench in CIT v. Export India Corporation (P.) Ltd. [1996] 219 ITR 461, this court has dismissed a number of appeals including I.T.A. No. 4 of 1982-CIT v. Gobind Ram [1996] 221 ITR 892 and I. T. A. No. 4 of 1981--CIT v. Prem Nath. While dismissing Appeal No. 4 of 1982 (see [1996] 221 ITR 892), vide its order dated May 6, 1996, the Division Bench has independently examined the issue and held that the object with which the circular dated May 16, 1986, has been issued deserves to be applied to the cases in which appeals have been filed by the Department.
6. In all these appeals, it is not in dispute that the apparent value of the properties sought to be acquired by the Department is less than Rs. 5 lakhs. Therefore, without going into the merits of the other arguments raised in the appeals and by applying the ratio of the decisions in CAT v. Export India Corporation (P.) ltd [1990] 219 ITR 461 (P & II) and I. T. A, No. 4 of 1982--CIT v. Gobind Ram [199G] 221 ITR 892 (P & H), we dismiss these appeals.