1998 (3) TMI 93

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....counted 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. Rule 48-I has prescribed the interest at eight per cent. per annum. The petitioner entered into an agreement on July 20, 1989, which was for the consideration of Rs. 42 lakhs. The time stipulated for the completion of sale transaction was 10 months from the date of the agreement to sell. The statement in Form No. 37-I dated July 31, 1989, was filed by the petitioner along with a copy of the agreement to sell dated July 20, 1989. By order dated September 15, 1989, it was directed that the property is fit to be purchased by the Central Government. The possession of the property ....

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....y of the provision was not examined in this case. The decision of Shrichand Raheja v. S.C. Prasad, Appropriate Authority [1995] 213 ITR 33 (Bom), is also relied upon wherein it was observed. "The principle of discounting is well-known and regularly applied in accounting. In plain words, discount means present value of payment due in future. The word 'discount' in the Oxford English Dictionary means an abatement or deduction from the amount or from the gross reckoning or value of anything and is used in commerce to mean a deduction made for payment before it is due. Discount is primarily a rebate and such allowance in reduction of the total sum payable. It is subtracted from the amount in consideration of pre-payment before the due date. St....

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....hin 15 days of the order but the payment is made subsequent to taking of possession and, therefore, at least discounting should be only from the date of actual payment by the respondent. It is only the reduced interest element which is deducted from the total consideration as the deduction is made at the rate of eight per cent per annum. If the amount is deposited in any bank in F. D., the interest received would be much more as the rate of interest on F. D. R is more than eight per cent., depending On the period for which the F. D. receipt is purchased. The seller does not lose because by the time the payment under the agreement could have been received from the purchaser, the amount received from the Central Government would be much more ....