The main legal point established in the judgment is the court's limited jurisdiction in reviewing the valuation of agricultural land under Section 269ud (1) of the Income-tax Act.

( 1 ) THIS writ petition is directed against an order dated 22/03/1995 passed by Deputy Commissioner of Income-tax, being the appropriate authority, in terms of Section 269ud (1) of the Income-tax Act.

( 2 ) THE said authority had directed purchase of land said to be agricultural property by the Central Government bearing Khewat No. 11, Khata No. 13, Rect. No. 14, kila No. 4/2 (2-16) Kila No. 5 (8-0), measuring 26 kanal 16 marlas (3. 35 acres) situated in the revenue state of village Fatehpur, Tehsil and district Gurgaon with electric connection, tubewell and one room and trees etc According to the petitioner, the respondents No. 3 and 4 herein, are owners of the said land. It is contended that the said property was the ancestral properly of the arore-inentioned respondents. By agreement dated 28/11/1984, the said respondents entered into an agreement to sell the said property, consideration whereof was fixed at the rate of Rs. 20,000. 00 per acre, amounting to a total consideration of Rs. 68 lakhs inclusive of tubewell, electric connection and one room, Fridge etc. Respondents NO. 3 and 4, in terms of Rule 48-L- of the Income-tax Rules, 1962, filed a statement of transfer of subject property as required in form 37-I together with the said agreement. It was contended that the land in question is agricultural land.

( 3 ) A show cause notice dated 15/03/1995 was issued upon the petitioner as also the respondents No. 3 and 4 asking them to file various documents/information relating to the said property. The said show cause notice reads thus:

"dear Sirs, i am directed by the appropriate authority, Delhi to state as under : - 2. Statement in form No. 37-1 under Rule 48-L of the Income Tax Rule, 1962 has been filed on 6-12-94 in respect of immovable property/agricultural land at Fetehpur, tehsil and District Gurgaon. This statement is signed by the transferors, Svs. Jage Ram and Om Prakash and by Sanjeev kumar, authorized signatories for M/s. R. S. and Co. , as transferees. The apparent consideration disclosed is Rs. 68,00,000. 00. It is also claimed that the apparent consideration includes the cost of tubewell of Rs. One lac and the balance amount represents the value of agricultural land at the rate of Rs. 20 lac per acre. 3. The subject property is situated in the heart of malibu Township, Gurgaon, which has been recently developed. The subject property is having existing public roads on three sides. It is also surrounded by the developed residential flats of Malibu Town. It is learnt that the whole area has now been declared as residential, even though the subject property is claimed to be in agricultural land. 4. The value of the subject property as disclosed is considered low if similar other sale instances of properties are considered. The Sale price of plots exceeding 800 sq. mtrs. of Malibu Town which are very close to the subject property is above Rs. 2,500. 00 per sq. mtr. The property is of 3. 35 Acres or 16214 sq. yds. If 20% area is left out for the roads etc. (say 3243 Sq. yds), the balance available area will be 12971 sq. yds. or 10849 sq. mtrs. The value of such area @ Rs. 2,500. 00 per sq. mtr. comes to 10849 x 2500 - Rs 2,71, 22,500/ -. If an amount of Rs. 24,32,000. 00 being development charges @ Rs. 150 per sq. yd. for the entire area of 16214 sq. yds. is deducted, the net value comes to Rs. 2,71,22,500. 00 minus 24,12,000/- = Rs. 2,46,90,500. 00. If the value of tube- well of Rs. 1 lac is added, the total value comes to Rs 24690500/- + Rs. 1 lac = Rs. 2,47,90,500/- as against the apparent consideration disclosed at Rs. 68,00,000. 00. 5. Your attention is also invited to the sale of agricultural land in the neighborhood, which are situated at a much inferior location. The sale deed for Rs. 6,69,3 75. 00 has been registered on 17-2-1995 in respect of a small portion of lands at Killa 4/24/1-25. This sale instance property consisted of 3 Kanals, 3 marlas and was sold at the rate of rs. 17 lac per acre.