9911796707
TMI Blog1985 (12) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... n with the sale of the property? (b) Rs. 3,00,000 obtained for additional Floor Space Index (F.S.I.) for Part B of the property as per the agreement for sale thereof through the efforts of the vendees subsequently ? (c) Rs. 7,41,000 on account of corresponding higher value fetched on sale of the remaining Parts A and C of the property subsequent to the sale of Part B thereof and developments effected thereon, i.e., Part B ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified is holding that the events taking place subsequent to the valuation date could not be taken into consideration in working out the market value of the property and thereby upholding the valuation of Rewa House, Bomba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, contended that portion 'B' of the Rewa House at Bombay was sold on March 31, 1972., for Rs. 16,75,000 and for the execution of the sale, the assessee incurred expenses to the tune of Rs. 2,77,140 which are liable to be deducted from the sale price. He further submitted that the sale price was receivable in terms of the agreement, in instalments, and, therefore, the assessee is further entitled to deduction for the loss of interest during the period from the date of sale to the date when the sale price was received and thus after making the aforesaid deduction from the sale price, the balance thereof only represents the market value of the property on March 31, 1972. Next, it was submitted that the purchasers managed to get perm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducted. It is next contended that the purchasers had obtained floor space index for which an amount of Rs. 3 lakhs was given and this amount is liable to be deducted from the sale proceeds. While making this submission, learned counsel failed to see that had this agreement been arrived at between the assessee and the purchasers, then, to this extent, a term must have found place in the agreement of sale or in the sale deed itself, but no such stipulation finds a place. Therefore, in our opinion, the assessee is not entitled to claim such deduction for A and C portions of the building. Therefore, the total sum of Rs. 16,75,000 which was paid to the assessee will be taken as the sale price, i.e. the market value of the property as on March ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rice by way of interest and as such as compared to Rs. 38 lakhs for which the house was sold, deduction of Rs. 5,06,002 (against the price of Rs. 24,93,998 on March 31, 1969, and Rs. 4,59,348 (against the price of Rs. 32,00,000 in 1970-71) have already been given, as the sale price of the Rewa House, Bombay, was received by the assessee in instalments. Therefore, the principle adopted by the Revenue cannot be said to be unjustified and as such the legitimate relief to which the assessee was entitled has already been granted to him which cannot be said to be unfair and unjust, needing interference by this court. Here, it will not be out of point to state that while determining the fair market value of the property, the potentiality of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In K. S. Venkataraman and Co. (P.) Ltd. v. State of Madras [1966] 60 ITR 112 (SC), C. P. Sarathy Mudaliar v. CIT [1960] 62 ITR 576 (SC), Aluminium Corporation of India Ltd. v. CIT [1972] 86 ITR 11(SC) and Popular Engineering Co. v. CIT [1983] 140 ITR 398 (MP), the aforesaid view that the High Court acts in such matters in an advisory capacity has been registered. Therefore, the aforesaid discussion makes it clear that the only power which the High Court exercises in reference matters, is to give its opinion about the question referred to it in its advisory capacity by answering those questions in favour of the assessee or the Revenue, as the case may be. Therefore, the argument advanced by learned counsel is repelled. The questions refer ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
