9911796707
TMI Blog1996 (2) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... yment made by the assessee to his three brothers for vacating the premises at 51, Monalisa, 10, Bomanji Petit Road, Bombay --- 400 030, while calculating the amount of capital gains ? " 3. Briefly the facts : --- Assessee owned a 1580 sq. ft. flat at Monalisa. Indisputably, the flat was purchased by the assessee with his own funds. It was purchased on 21-2-1968 for Rs. 48,201. It was sold on 25-11-1986 for Rs. 22 lakhs. During the relevant assessment year, assessee reflected capital gains derived from the sale of this flat. He claimed deduction of Rs. 12 lakhs in respect of the amount paid to his brothers, namely, Shashikant, Navin and Hemant. It was claimed that the brothers to whom this amount was paid were living with the assessee. Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Representative relied on the order of the Assessing Officer. 5. Shri J. D. Mistry, learned counsel for the assessee appeared before us. It was submitted that the amount of Rs. 12 lakhs was paid by the assessee to get the premises vacated. The brothers of the assessee were reluctant to vacate the premises. They acquired the right in the said premises by holding uninterrupted possession since beginning. In the eventuality of suit being filed for eviction, the matter was likely to be delayed. The assessee might be deprived the price, which he was getting on the sale of the flat. It was, therefore, considered prudent that due compensation be given to the brothers for vacating the flat. The amount was alleged to be paid in terms of family set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is right, there is remedy). In the given situation, we do not think that any Court of Law could allow any claim to the brothers of the assessee. They were not the owners of the house. They were not the tenants. Assessee allowed them to stay out of natural love and affection. There is absolutely no evidence that the assessee took any money for allowing them to stay. In these circumstances, if it is said that the 'right' is generated, we are afraid that the source of generosity will get dry. People will think twice before extending such hospitality to a relation. 8. Whether this payment was necessary to expedite the sale ? On record there is nothing to demonstrate the exigency of such payment. It was something personal. Obligation, if there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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