TaxTMI 
TaxTMI 
TaxTMI 
1983 (3) TMI 6
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.... an aggregate amount of Rs. 1,00,000 and Rs. 2,00,000 for the assessment years 1973-74 and 1974-75 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sale consideration in respect of the sale of properties effected during the relevant accounting years amounted to Rs. 1,00,000 and Rs. 2,00,000 without considering the relevant fact that the properties had been in adverse possession at the time of the sale in the relevant accounting years and to resume such properties, the consideration received earlier between 1950 to 1955 had to be returned or adjusted against the actual sale value in 1973 and 1974 ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was righ....
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....other in the full value of the consideration. Thus, he had taken the consideration for the properties sold in the year 1973-74 as Rs. 1,75,000 and in respect of the sale effected for the subsequent year 1974-75 as Rs. 3,66,000. The above computation was based on the ITO's view that the consideration which passed between the assessee's adoptive mother and the concerned purchasers should be taken into account for determining the full value of the consideration as the assessee has chosen to enter into fresh agreements for sale with the very same persons who were in possession of the properties in question under void sale deeds entered into by the assessee's adoptive mother instead of executing the decree in his favour for obtaining possession.....
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....n question, the consideration actually received by him has been stated and that is Rs. 1,00,000 for the year 1973-74 and Rs. 2,00,000 in the year 1974-75. The ITO has not gone into the question as to whether the said sums represented the same market value of the properties sold by the assessee during the assessment years 1973-74 and 1974-75 and after conducting an enquiry on the market value of the properties sold, he has merely proceeded to aggregate the consideration paid to the adoptive mother by the purchasers and the consideration paid by them to the assessee for the purpose of determining the fair market value of the properties. He appears to proceed on the basis that in view of the following three circumstances, the said aggregate va....
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....roperties will include the price paid to the adoptive mother. After the judgment of this court in C. S. No. 12 of 1961, the purchasers from the mother, who were also parties in C. S. No. 12 of 1961, were well aware that the sale deeds executed by the mother have become void and might have approached the assessee to purchase the property from him. It cannot be disputed that if the assessee had sold the properties to third parties, he would have received a fair price for the same. Therefore, the assessee, with full knowledge of the fact that he will get the full value of the properties if he sells the same to third parties, would not have agreed to reduce the price payable by the purchasers to the extent of the price which they had paid to th....
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....er in respect of the earlier sale deeds which bad been struck down by the High Court as void. There is no material on record to show that the assessee received a paisa more than the amount described in the sale deeds executed by him. The Tribunal has specifically rejected the plea taken by the Revenue that the assessee had merely perfected the sale executed by the mother and, therefore, the sale consideration paid to the mother should also be taken as consideration received by the son, the assessee. The Tribunal very rightly points out that there is no question of perfecting the void sales made by the adoptive mother and that so long as the sale deeds do not proceed on the basis that the consideration paid to the mother on the earlier occas....