1989 (3) TMI 104

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....t of the court was delivered by S. S. SODHI J.-On March 13, 1967, the assessee, New Suraj Financiers and Chit Fund Co. Pvt. Ltd., purchased 3/4ths share in a building in Delhi, and, thereafter, let it out to its sister concern, New Suraj Transport Co. (P.) Ltd., at a rent of Rs. 1,800 per month. Later, by a book entry, the assessee sold its share in the building on November 25, 1969, to its sis....

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.... the same time, the Income-tax Officer also included a further sum of Rs. 15,534 being the interest payable to it on the sale consideration of Rs. 1,29,450 for this building. This order was upheld both by the Appellate Assistant Commissioner on appeal and by the Tribunal on further appeal. In these circumstances, the following question of law has been referred to this court for opinion : "Wh....

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....essee to be the owner of the building and added to its income the notional rental income of Rs. 18,000 and at the same time also added a sum of Rs. 15,534 which the assessee is said to have earned as interest on the sale price of the building. Once the sale of the building by the assessee came to be disregarded, no interest on the sale price could be said to have accrued to it, when, as mentioned ....