1979 (10) TMI 7

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....Commissioner of Income-tax, the following two questions have been referred to this court: "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the Income-tax Officer was not justified in invoking the provisions of section 52(2) of the Income-tax Act, 1961, to arrive at the capital gains and assess under section 45 of the Income-tax Act....

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.... Rs. 10,000 as brokerage. It is on this basis the return was filed. The Income-tax Officer, however, took the view that the fair market value of the property as on the date of sale was much more and in the estate duty assessment of the assessee's father, the Tribunal had fixed the (market) value of the same property at Rs. 8,39,000. The Income-tax Officer, therefore, applied the provisions of sect....

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...., was not applicable and he directed the Income-tax Officer to recompute the capital gains on the basis of the sale price being Rs. 5,00,000. In the appeal against the gift-tax assessment, the Appellate Assistant Commissioner upheld it relying on section 4(1) of the Gift-tax Act. While the Income-tax Officer appealed to the Tribunal against the Appellate Assistant Commissioner's order in the incom....

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....nal's view was that unless the assessee had received Rs. 8,39,000, the consideration as shown in the document of sale would have to be accepted. The result was that the order under the Income-tax Act applying section 52(2) was held to be bad. The matter as regards the gift-tax assessment has become final as there is no reference against the Tribunal's order in the gift-tax appeal. The Commissioner....