Section 269UE of the Income-tax act, 1961 – Vesting of property in central government – Disposal of properties acquired under Chapter xx-c – supersession of instruction no. 1857, dated 19-9-1990
INSTRUCTION NO. 2/2013 [F. NO. 316/01/2013-OT], DATED 5-2-2013
In supersession to CBDT Instruction No. 1857 issued on 19-9-1990 vide F. No. 316/22/1989-OT for auction of properties purchased under Chapter XX-C of the Income-tax Act, 1961, comprehensive instructions on the modalities of fixing the reserve price for auction of properties acquired under Chapter XX-C are as under :
i. The reserve price of the property is to be fixed with reference to fair market value of the property.
ii. For obtaining the fair market value of the property, the acquired property be referred to Valuation Cell of the Department. Valuation Cell shall submit a Detailed Valuation Report to the Appropriate Authority.
iii. This detailed valuation report should take into account comparative market analysis by quoting at least three sale instances of similar land use cases/properties in the vicinity.
iv. The Appropriate Authority shall, based on the Valuation Report, arrive at the reserve price of the property. In case, it is considered necessary by the Appropriate Authority to fix reserve price below the valuation given by the Valuation Cell, proposal shall be sent to the Board giving detailed reasons seeking prior permission.
v. The reserve price so determined shall be valid for a period of six months from the date of determination of the same.