1984 (6) TMI 85

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..... ars that there was a very heavy rain in Poona on 9-10-1975, in consequence of which the building collapsed and was reduced to rubble. The assessee claimed that she had sustained a capital loss of Rs. 3,33,264, being the estimated value of this property as, according to the assessee, the very asset, namely, the building, having been destroyed, her right in the property was extinguished. Therefore, .....

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..... ring to some observations of Chagla, CJ. in the case of Sir Kasturchand Ltd. v. CIT [1949] 17 ITR 493 (Bom.), he held that in such a case where the asset was totally destroyed without the assessee receiving any consideration, therefor, it was not necessary that the assessee should have received any consideration and the assessee was entitled to the capital loss as if there was a transfer by exting .....

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..... e assessee could be eligible. 4. We have carefully considered the facts and circumstances of the case and the arguments on either side. As stated earlier, the assessee's immovable property at Poona was destroyed due to torrential rain during the accounting period and the assessee did not receive either any insurance money for the same (perhaps the property was not insured) or for the sale of the .....

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..... of the Gujarat High Court in this respect, thought, of course, whether consideration was necessary in the case of such an extinguishment of right was not considered by the learned Judges of the Supreme Court. They agreed in toto with the finding of the Gujarat High Court. No contrary decision has been brought to our notice by the learned counsel for the assessee. The assessee has relied on the Bo .....

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..... s of the Bombay High Court, have held that an authority like the Tribunal, acting anywhere in the country, has to respect the law laid down by a High Court, though of a different State, so long as there was no contrary decision of any other High Court on that question. Admittedly, as of today, we have no decision contrary to the three Gujarat High Court decisions brought to our notice on behalf of .....

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