9911796707
TMI Blog2003 (5) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... Centre, situated on Vill. Bhabat near Chandigarh, for a total consideration of Rs. 10,00,000 to M/s Keser 90, Bangla Sahib Road, New Delhi, through Shri Anantbir Singh, partner. The case was referred to the valuation officer on 19th July, 1991, to determine the fair market value of the abovementioned building. The Departmental valuer vide his report dt. 18th March, 1992, estimated the fair market value of the property at Rs. 22,96,900. Thus, there is a difference of Rs. 12,90,000 in the consideration of the property sold. The assessee, vide order sheet dt. 19th Jan., 1994, was asked to explain as to why the difference in the sale consideration of the property sold and fair market value as estimated by the valuation officer should not be tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided by the Delhi High Court, no doubt, reveals that it favours the contentions of the assessee. However, the same cannot be applied in the present case because this has not been decided by the jurisdictional High Court. According to s. 4(1)(a) of the GT Act, 1958, "Where property is transferred otherwise than for adequate consideration, the amount by which the market value of the property at that date of the transfer exceeds the value of consideration, shall be deemed to be a gift made by the transferror." Thus, according to the GTO, in view of the provisions of the GT Act mentioned above, the difference of Rs. 12,96,000 in the sale consideration of the property and as estimated by the valuation officer of the Department is treated as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, the value of the land and the building except the generating set, was determined at Rs. 16,02,500. The assessee was willing to sell the property at this price and a letter of acceptance was given to the CRPF. Unfortunately, the CRPF did not purchase this property. An attempt was made thereafter to dispose of this property but there was no satisfactory offer. Ultimately, in January, 1990, the property was sold for a consideration for Rs. 10 lacs. He further argued before the CIT(A) that the firm had been incurring losses and there was also a dispute between the partners and, therefore, it had become necessary to dispose of the property. Further, it was stated to be a distress sale because of the state of affairs that was then existing in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the instant case, the firm had been running into loss, one of the partners have to leave the troubled State of Punjab and go away to Hyderabad and in fact he had gone away. Further, there was no ready buyer. This area was at that time in the thorns of violent disturbance and there was a threat to the life and property of everyone. The property had been on sale for sometime and no buyer was readily available. There was apprehention that things would become worse. Under these circumstances there have been numerous distress sales. The valuation officer, Patiala, was heard in this regard and he confirmed that no consideration has been given to the fact that the prices would be depressed by the existence of terrorism at that time. I have, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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