TMI Blog2005 (8) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... single judge in his impugned judgment has held that the members of the appropriate authority of the Income-tax Department were not correct in determining the discounted value payable to the writ petitioner commencing from the date of the agreement - Held that the principle of discounting is based on logic and reasons, and the deeming fiction for determining the value of the consideration at disco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it under section 269UD of the Income-tax Act (in short "the Act") ordered purchase of the said property by order dated October 13,1997, by the Central Government. The consideration was paid to the writ petitioner on November 6, 1997, and the writ petitioner did not object to the purchase of the property by the Government. The only grievance of the writ petitioner is regarding the discount made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after such date shall be deemed to be the discounted value of such consideration, as on the date of such agreement for transfer, determined by adopting such rate of interest as may be prescribed in this behalf." The short controversy in the present case is as regards the period of the discount for the purpose of deducting the interest from the value of the property shown in the sale agreement. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll, and (ii) the date when the amount is payable. In our opinion, if we introduce a third date then it will not be possible to calculate the period for which the discount will be considered, apart from violating the principle laid down by the Supreme Court in the aforesaid decision. Hence we cannot agree with the submission of learned senior counsel for the assessee/respondent that the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e view taken by the Supreme Court. The view of the Bombay High Court in Shrichand Raheja v. S.C. Prasad, Appropriate Authority [1995] 213 ITR 33 is not in accordance with the view of the Supreme Court and is, hence, incorrect. We, further, agree with the view of the Karnataka High Court in C. Venkata Rao v. Union of India [1999] 236 ITR 895 that the principle of discounting is based on logic and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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