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TMI Blog1990 (7) TMI 188X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Lalji Ghelabhai for Rs. 28,000 vide agreement dated 10th Oct., 1980. The ITO found that in the firm M/s Lalji Ghelabhai the Directors of the assessee company were substantially interested. This agreement was not duly registered and hence the ITO was of the opinion that since the transfer and sale of immovable property had not been done by a registered deed, the assessee company continued to be the owner of that structure. An alternative plea was made before the ITO that an allowance in respect of the interest on the amount received towards sale consideration should be allowed at the market rate. But this contention also did not find favour. It was contended on behalf of the assessee before the legal owner of the superstructure and merely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arnataka High Court in the case of Ram Kumar Mills P. Ltd. vs. CIT(A) (1989) 78 CTR (Kar) 141: (1989)) 180 ITR 464 (Kar). 5. We have considered the facts and circumstances and studied with a great care the aforesaid rulings and are of the view that the assessee cannot succeed in the present appeals. The sale-deed purports to transfer the ownership of the superstructure, which is an immovable property of a value of more than Rs.100. The document is thus compulsorily registerable under s. 17 of the Registration Act. Admittedly, the sale-deed has not been registered and, therefore, it fails to achieve its purported objects of transfer of ownership from the assessee-company to the firm. The assessee-company thus continued to be the owner of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal owner. That case before the Hon'ble Karnataka High Court pertained to the asst. yr. 1978-79. The newly introduced provision of s. 27(iiia) of the IT Act has been introduced only with effect from 1st April, 1988 whereas the present two appeals relate to the asst. yrs. 1982-83 and 1983-84. That provision, therefore, cannot have application to the matters which are the subject-matters of the present appeals, The ground of appeal raised in the present appeals is excessive. Neither any material were produced before us nor any attempt was made in the arguments of the learned counsel for the appellant on this aspect of the matter. We thus see no reason to interfere on this aspect of the matter in controversy. 7. As a result of the above d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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