Deduction for unearned increase in plot transfer depends on proof of actual payment under auction conditions

Deduction of 50% of any unearned increase in plot value under Delhi Development Authority auction terms depends on proof that such amount was actually paid on transfer. If no payment was made, no deduction arises; if payment was made, 50% may be claimed as deduction under the auction conditions. Where the record does not clearly establish payment, the issue is factual and must be determined on evidence before any deduction can be allowed or denied. The matter was therefore remitted for factual examination rather than decided on the existing record.

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Issues: Whether deduction of 50 per cent of the unearned increase in the value of the plot was allowable on transfer, and whether the matter required factual examination as to whether any such amount had in fact been paid.

Analysis: The question referred arose from the valuation of a plot transferred under the auction terms of the Delhi Development Authority. The Court noted that the record did not clearly show whether any amount representing unearned increase had actually been paid. The entitlement to deduction depended on that factual aspect. If no payment had been made, deduction would not arise; if payment had been made, 50 per cent thereof would be allowable as deduction under the auction conditions.

Conclusion: The Court declined to answer the reference on merits and remitted the matter to the Tribunal for decision on the factual issue.

Ratio Decidendi: Where entitlement to deduction depends on whether an amount was actually paid towards unearned increase, and that fact is unresolved, the matter must be determined on evidence before granting or refusing the deduction.

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