TaxTMI 
TaxTMI 
1985 (12) TMI 34
X X X X Extracts X X X X
X X X X Extracts X X X X
....t on account of one-half share of stamp duty, registration charges and other expenses incurred in connection with the sale of the property? (b) Rs. 3,00,000 obtained for additional Floor Space Index (F.S.I.) for Part B of the property as per the agreement for sale thereof through the efforts of the vendees subsequently ? (c) Rs. 7,41,000 on account of corresponding higher value fetched on sale of the remaining Parts A and C of the property subsequent to the sale of Part B thereof and developments effected thereon, i.e., Part B ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified is holding that the events taking place subsequent to the valuation date could not be taken into consider....
X X X X Extracts X X X X
X X X X Extracts X X X X
....esaid two questions for answer to this court. Shri H. S. Shrivastava, learned counsel appearing on behalf of the assessee, contended that portion 'B' of the Rewa House at Bombay was sold on March 31, 1972., for Rs. 16,75,000 and for the execution of the sale, the assessee incurred expenses to the tune of Rs. 2,77,140 which are liable to be deducted from the sale price. He further submitted that the sale price was receivable in terms of the agreement, in instalments, and, therefore, the assessee is further entitled to deduction for the loss of interest during the period from the date of sale to the date when the sale price was received and thus after making the aforesaid deduction from the sale price, the balance thereof only represents t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. 2,93,400 as had been claimed towards the expenses incurred for execution of the sale deed, is not liable to be deducted. It is next contended that the purchasers had obtained floor space index for which an amount of Rs. 3 lakhs was given and this amount is liable to be deducted from the sale proceeds. While making this submission, learned counsel failed to see that had this agreement been arrived at between the assessee and the purchasers, then, to this extent, a term must have found place in the agreement of sale or in the sale deed itself, but no such stipulation finds a place. Therefore, in our opinion, the assessee is not entitled to claim such deduction for A and C portions of the building. Therefore, the total sum of Rs. 16,75,0....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he market value, adequate adjustment has been given to the assessee by reducing at 9% per annum on the amount of sale price by way of interest and as such as compared to Rs. 38 lakhs for which the house was sold, deduction of Rs. 5,06,002 (against the price of Rs. 24,93,998 on March 31, 1969, and Rs. 4,59,348 (against the price of Rs. 32,00,000 in 1970-71) have already been given, as the sale price of the Rewa House, Bombay, was received by the assessee in instalments. Therefore, the principle adopted by the Revenue cannot be said to be unjustified and as such the legitimate relief to which the assessee was entitled has already been granted to him which cannot be said to be unfair and unjust, needing interference by this court. Here, it ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ue position that emerges is that the High Court is not a court of appeal, but it exercises only an advisory jurisdiction. In K. S. Venkataraman and Co. (P.) Ltd. v. State of Madras [1966] 60 ITR 112 (SC), C. P. Sarathy Mudaliar v. CIT [1960] 62 ITR 576 (SC), Aluminium Corporation of India Ltd. v. CIT [1972] 86 ITR 11(SC) and Popular Engineering Co. v. CIT [1983] 140 ITR 398 (MP), the aforesaid view that the High Court acts in such matters in an advisory capacity has been registered. Therefore, the aforesaid discussion makes it clear that the only power which the High Court exercises in reference matters, is to give its opinion about the question referred to it in its advisory capacity by answering those questions in favour of the assessee o....