LAWS(SC)-2007-5-203

DILIP N. SHROFF KARTA OF N. D. SHROFF Vs. JOINT COMMISSIONER OF INCOME TAX

Decided On May 18, 2007
Dilip N. Shroff Karta Of N. D. Shroff Appellant
V/S
JOINT COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

(1.) Leave granted.

(2.) The Appellant herein is an assessee under the Income Tax Act. It is an HUF. For the assessment year 1998-99, an income of Rs.30,80,030/- was declared by it, inter alia, showing a long term capital loss of Rs.34,12,000/- . The said capital loss was said to have arisen on account of sale of property being land and building known as Jekison Niwas , 220 Walkeshwar Road, Mumbai. Admittedly, the Appellant had 1/4th share therein. It entered into an agreement for sale of undivided 1/4th share in the said property for a sum of Rs.8 crores with one M/s Layer Exports Pvt. Ltd.. For the purpose of valuation of the said property, one Shri U.D. Chande, a registered valuer, was appointed. On 01.04.1981, the value of the said 1/4th share in the property was determined at Rs. 2,52,00,000/-. In the said valuation report, it was stated that the purpose was valuation for computation of capital gains. The report was filed in the prescribed form. All the required particulars/ information were furnished. In the said report, description of the property, location thereof, whether situated in residential/commercial/mixed/industrial area, and classification thereof were shown. As regard, proximity to civic amenities, it was stated that the plot is very close to "Raj Bhawan". All other amenities except cinema were within 1 k.m. Means and proximity to surface communication by which the locality is served were also stated. All other requisite particulars, as specified, were stated.

(3.) After noticing that the total development area of land is 4605 sq. yds with an F.S.I. of 1.33, it was stated