9911796707
TMI Blog2000 (7) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... elhi, which were constructed over a leasehold land. The assessees claimed deduction @ 25% of total value of flats under Schedule III on account of an unearned increase in value of leasehold land. Whereas, on the other hand, according to lower authorities, since the assessees are claiming adjustment for unearned increase in value of land the same cannot be allowed to them, firstly, because as per clause 6 of the agreement executed between the sellers and buyers (assessees), the assessees did not get any interest, right or title into or over the land on which the flats in question were constructed and secondly, because the assessees are not the owners of land but are only owners of flats. Thus, the lower authorities were of the view that no a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.1 Rule 7 of Schedule III of W.T. Act/Rules reads as below:- 'Adjustment for unearned increase in the value of the land. 7. Where the property is constructed on land obtained on lease from the Government, a local authority or any authority, referred to in clause (20A) of section 10 of the Income-tax Act, and the Government or any such authority is, under the terms of the lease, entitled to claim and recover a specified part of the unearned increase in the value of the land at the time of transfer of the property, the value of such property as determined under rule 3 shall be reduced by the amount so liable to be claimed and recovered or by an amount equal to fifty per cent of the value of the property as so determined, whichever is l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took a plot of land on lease from Government of India. It means that the Government is a lessor and Shree Chandgdeo Sugar Mills Ltd. is a lessee of the land in question. Thereafter, the lessee constructed a building over the land called the 'New Delhi House'. Out of this bldg., the lessee, ie., seller, has sold one flat to each of the buyers i.e. the present assessees. Thus, from this agreement, it is clear that the seller is a lessee of plot of land and Government is a lessor of plot of land in question. The seller/ lessee thus has sold each flat in the bldg. constructed over this land to the assessees. On reading the'Information for Guidance of Lease-holders, the lessees, if sells lease hold property, it is required to pay the amount of u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n from the agreement as well as the guidelines contained in the Information for Guidance of Lease-holders, relied upon by the assessees, the assessees are not able to show that the lessor, ie. Government, is entitled to claim and recover a specified part of unearned increase in value of land from them. 4.3 Now if we again revert back to the facts of the case, the gist of our above discussion would be that Government of India is a lessor of land in question over which flats were constructed by the seller, i.e. lessee. The lessee sold the flats to the assessees, ie. buyers. It means that since sellers are lessees under Government of India of the land in question, so Government of India was only entitled to receive unearned increase in valu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
