Commissioner Of Income-Tax vs Smt. Sushila Devi
2001 Latest Caselaw 899 Del

JUDGMENT

Arijit Pasayat, C.J.

1. Heard.

2. At the instance of the Revenue, the following question has been referred for the opinion of this court by the Income-tax Appellate Tribunal, Delhi Bench "C" (in short "the Tribunal"), under Section 256(1) of the Income-tax Act, 1961 (in short "the Act") :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that Section 52(2) of the Income-tax Act, 1961, was inapplicable to the sales of two properties for the purpose of computing capital gains on the basis of the market value of the properties as on the date of transfer ?"

3. The dispute relates to the assessment year 1971-72. We need not go into the factual aspects in detail in view of the following finding recorded by the Tribunal :

"It is not the case of the Revenue, that the assessed had received an amount of consideration over and above what was stated in the registered sale deeds. There is also no dispute that the sale transactions were effected to absolute strangers."

4. In view of this finding, the ratio of the apex court's decision in K.P. Varghese v. ITO [1981] 131 ITR 597 has full application. Accordingly, the question is answered in the affirmative, in favor of the assessed and against the Revenue.

5. The reference stands disposed of.