9911796707
TMI Blog2012 (11) TMI 985X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 15,00,000/- made to Amora Chemicals Pvt. Ltd. is not covered under the provisions of Section 48(1) and does not represent a deductible expenditure for computation of capital gains, and whether the interpretation of said section is correct in law and on facts? (2) Whether, on the facts and in the circumstances of the case, the Hon'ble Tribunal was right in holding that the interest of Rs. 1,66,014/- credited in the Savings Bank Account on the advance amount given by the purchaser, i.e. Bank of Baroda, against purchase consideration, is not income from house property but the same is income from other sources?" 2. The counsel for the appellant-assessee stated that looking to the smallness of the amount, he does not press question No.2. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the present appeal has been filed. 3. Mr. R.K. Patel, learned counsel for the appellant vehemently contended that the factum of payment of Rs. 15,00,000/- to the Company is not disputed. In fact the Revenue desired to tax the Company's capital gain on such receipt of Rs. 15,00,000/-. Since neither the transaction nor the payment was in doubt, in terms of section 48 of the Act, amount of Rs. 15,00,000/- should be deducted for the purpose of computing capital gain on sale of the property. Counsel submitted that the Revenue Authorities as well as the Tribunal gravely erred in ignoring such admitted facts and proceeding merely on the basis of some interconnection between the assessee HUF and the Company. 4. Mr. K.M. Parikh, learned coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pendra M. Patel and their families. M/s. Amora Chemicals is a Private Limited company with fully paid up share capital of Rs.81,400 comprising 814 equity share of 100 each. Out of 814 shares 805 shares are held by members of the assessee HUF. The company is thus controlled and managed by the assessee HUF and both the brothers viz. S/Shri L.M. Patel and B.M. Patel are directors of the company. As per the rent agreement place at page 13 of the paper book the assessee HUF entered into the agreement on 1.7.1978 whereby partly constructed building was agreed to be rented to the company whereby half portion of the second floor, and 4th, 5th, 6th and 7th floor were given on monthly rent of Rs.9,970/-. The agreement further provided that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were initiated. Only after such negotiations, rent note was entered into on 1.7.1978 between the assessee and the Company. It has also come on record that the assessee had entered into negotiations with the Bank even before terminating tenancy. 7. The Tribunal recorded that amount of Rs. 15, 00, 000/- paid by the assessee to the Bank cannot be stated to be incurred wholly and exclusively for the purpose of the sale. The Tribunal further recorded that the amount shown as compensation for termination of tenancy rights is in fact not related to the transaction of sale made by the assessee HUF. The entire amount of Rs . 1, 03 , 22 , 325/- was made by the Bank of Baroda to the assessee on 9.6.1984 itself. It was noted that the Bank of Baroda wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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