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2015 (3) TMI 107 - DELHI HIGH COURTDetermination of value of property - under valuation of the property as held by AO - ITAT upholding the assessee’s contention that the value determined by the Assessing Officer (AO) in respect of the property was unsustainable - Held that:- ITAT took into consideration the suit for injunction filed by the purchaser Sh. M.P.Jain and the compromise statement dated 18.09.1989. It is also evident that despite the statement being recorded on 18.09.1989, title was not conveyed to the purchaser even though he continued to be in the possession of the property. It is matter of fact that original owner Sh.Tarsem Singh died in 1996; Sh.Gurdayal Singh, his agent/guardian died in 1994. After his death, the LRs continued to contest the title and eventually the purchaser agreed to pay a further amount of ₹35 lakhs. The ITAT took note of several decisions, including CIT vs. Naveen Gera (2010 (8) TMI 194 - Delhi High Court) and K.P. Varghese vs. Income Tax Officer [1981 (9) TMI 1 - SUPREME Court] to show that the AO has to base his view with regard to under valuation, upon objective material. The intervening death of the original owner only aggravated the problem inasmuch as the LRs apparently refused to honour the agreement which eventually forced the purchaser to shell out the further amount mentioned in the original agreement even though substantial amounts had been paid earlier. The fact that in the agreement, the parties ultimately agreed to abide by the statement recorded by the court in the year 1989, ifso facto, could not have been the ground for suspecting its bonafide. Given the fact that an order XXII Rule 3 CPC application was filed and the compromise duly recorded in the Court, we are of the opinion that the ITAT’s order does not lead to any substantial question of law requiring consideration. - Decided against revenue.
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