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TMI Blog2005 (8) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... cases are one and the same and, therefore, these appeals are disposed of through this common order. 3. The assessees herein had sold their houses situated at Hiranandani Gardens, Powai in Mumbai. Shri Charanbir Singh Jolly sold the house for a consideration of Rs. 22,05,372 and Shri Kanwarbir Singh Jolly sold his house for a consideration of Rs. 22,18,810. The houses were acquired by the brothers through agreements dated 31-3-1993 for a consideration of Rs. 5,25,000 and Rs. 5,85,056 respectively. The payments towards acquisition of the house property were made by the assessee in instalments between the period from 25-7-1992 and 17-6-1996. While computing the capital gains exigible on the sale of the house property, the assessees have comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the agreement for the purchase of property was executed in 1979 by paying a token amount and the property was handed over after construction in 1981. The property was transferred in 1983. The assessee argued for long-term capital period and the Assessing Officer adopted short-term capital period. The Tribunal held that the acquisition of the flat should be treated as the date of booking of the flat in November, 1978 and, therefore, it should be held that the assessee had held the property for more than three years and accordingly, the resultant gains would be long-term in nature. The learned counsel submitted that even though the decision, technical speaking, covers the question mainly of period of property held by an assessee, the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultimately paid by the assessees or Rs. 5 lakhs initially paid by the assessees. According to us, the cost of the property is Rs. 22 lakhs and not Rs. 5 lakhs. As already stated, every property has got its own intrinsic/market value irrespective of the mode of payment negotiated between the concerned parties. A house property worth Rs. 23 lakhs might be sold for Rs. 21 lakhs against a lump sum payment or it might be sold for Rs. 23 lakhs against instalment payments. Therefore, the maximum variation in the cost of the property depending upon the method of payment is only Rs. 2 lakhs i.e., the difference between Rs. 23 lakhs and Rs. 21 lakhs. If the first instalment paid in that case was Rs. 5 lakhs, it could never be held that the cost of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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