N.K.Sodhi, J.

1. This appeal filed by the Commissioner of Income-tax under Section 269H of the Income-tax Act, 1961 (for short, "the Act"), is directed against the order dated October 21, 1978, of the Income-tax Appellate Tribunal, Chandigarh, whereby the order of acquisition passed by the competent authority acquiring the property in dispute under Section 269F(6) of the Act was set aside and the two appeals filed by the transferor and the transferee allowed.

2. The facts giving rise to this appeal which are not in dispute may first be noticed. Shop-cum-flat No. 26 in the Vegetable Market at Chandigarh was sold by Des Raj Gupta, respondent No. 1, to Smt. Ram Piari, wife of Kesar Singh Lamba, respondent No. 2, as per sale deed dated February 23, 1973, for an apparent consideration of Rs. 91,000. The competent authority had reason to believe that the apparent consideration was less than the fair market value of the property and a reference was, therefore, made to the Valuation Officer, Chandigarh, to determine the said value of the property so transferred. As per his report, the fair market value was Rs. 1,28,750. On receipt of this report, the competent authority ini