Its upto your preference which ever you buy. But make sure the automatic one is CVT or other advanced type gear box. Auto is more user friendly and maintenance free. Resale value of auto is also more. However, in some car types, auto Tr is not good, so I am not sure about city 2006.
Manual Tr is for off roaders or rally racers. Infact it is more economical and more powerful, but as I said it is upto your preference.
About the price, I would say 10 lac is more than enough for a 2006 model car, but nowadays cars are sold very expensively.