Dilip N. Shroff v. Joint CIT & Anr.

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The Tax Publishers2007 TaxPub(DT) 1247 (SC) : (2007) 016 (I) ITCL 0246 : (2007) 291 ITR 0519 : (2007) 210 CTR 0228 : (2007) 161 TAXMAN 0218 IN THE SUPREME COURT OF INDIA S.B. SINHA & P.K. BALASUBRAMANYAN, JJ. Dilip N. Shroff v. Jt. CIT Civil Appeal No. 2746 of 2007 18 May, 2007 Appellant by: Anil B. Dewan, S.J. Mehta, Ramesh Singh, Bina Gupta, Inklee and Barooah Respondent by: Gopal Subramanium, Amit Dayal and B.V. Balaram Das JUDGMENT *S.B. Sinha, J.* 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 th share therein. It entered into an agreement for sale of undivided th 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 1-4-1981, the value of the said th 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. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2007 TaxPub(DT) 1247 (SC) : (2007) 016 (I) ITCL 0246 : (2007) 291 ITR 0519 : (2007) 210 CTR 0228 : (2007) 161 TAXMAN 0218

IN THE SUPREME COURT OF INDIA

S.B. SINHA & P.K. BALASUBRAMANYAN, JJ.

Dilip N. Shroff v. Jt. CIT

Civil Appeal No. 2746 of 2007

18 May, 2007

Appellant by: Anil B. Dewan, S.J. Mehta, Ramesh Singh, Bina Gupta, Inklee and Barooah

Respondent by: Gopal Subramanium, Amit Dayal and B.V. Balaram Das

JUDGMENT

S.B. Sinha, J.

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 th share therein. It entered into an agreement for sale of undivided th 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 1-4-1981, the value of the said th 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.