TaxTMI 
TaxTMI 
2008 (8) TMI 165
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....he first issue was with regard to the Tribunal deleting the addition of Rs. 34,72,000 on account of capital gains made by the Assessing Officer on the basis of the Valuation Officers' reports. The second issue was with regard to the Tribunal deleting the disallowance of Rs. 1,74,55,243 made by the Assessing Officer on account of bad debts claimed by the assessee. 2. In so far as the first issue is concerned, the facts are that the assessee sold two properties and disclosed capital gains of Rs. 21,17,357. One of the properties was a residential flat at Tilak Nagar, Dharti Co-operative Society, Chembur, Bombay, and the other was a building bearing No. 227A, Sant Nagar, East of Kailash, New Delhi. The Bombay flat was sold for a consideratio....
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....nation of the fair market value. The learned counsel for the appellant also submitted that in similar circumstances, this court in the case of CIT v. Amar Nath Narang : I. T. A. No. 931/2005 has admitted the following question of law: "Whether, on the facts of the present case, the Assessing Officer was right in referring the question of the fair market value of the property sold by the assessee to the Valuation Officer in terms of section 55A of the Income-tax Act, 1961 ('the Act') ? or was he in terms of section 48 read with section 45(4) of the Act bound to accept the value stated in the registered sale deed ?" 4. She submitted that the present case also raises a similar question and, therefore, the present appeal should also be ad....
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....entire dispute centres upon the expression "full value of consideration". According to the Revenue, the full value of consideration refers to the full market value. However, according to the assessee the expression "full value of consideration" cannot have any reference to the fair market value. 6. This controversy has already been settled by the Supreme Court in the case of CIT v. George Henderson and Co. Ltd. [1967] 66 ITR 622, the very expression "full value of consideration" was under consideration of the Supreme Court though in the context of the provisions of the Indian Income-tax Act, 1922. The provisions of section 12B of the 1922 Act pertain to capital gains. Sub-section (1) was in pari materia to section 45(1) of the preesent A....
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.... present Act does not have any reference to the market value but only to the consideration referred to in the sale deeds as the sale price of the assets which have been transferred. 9. With regard to the arguments of the learned counsel for the appellant based on the provision of section 55A of the said Act, it is immediately to be noticed that the said provision begins with the expression "with a view to ascertaining the fair market value of a capital asset". In other words, the reference to a Valuation Officer under section 55A is for the object of ascertaining the fair market value of a capital asset. It is only when the Assessing Officer is required to ascertain the fair market value of a capital asset that the provisions of section ....
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....h as floods or fires, explosions, etc., the question of determining the capital gains is also connected with the determination of the fair market value of the asset on the date of receipt of such amounts from the insurer. In section 45 (1A) of the said Act also, it is indicated that for the purposes of section 48 of the said Act, that is for computation of capital gains, the value of any money or the fair market value of the asset on the date of such receipts shall be deemed to be the full value of the consideration received or accruing as a result of such transfer of capital asset. In this situation also the Assessing Officer would be required to compute the fair market value of the asset and, therefore, a reference to the Valuation Office....
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....bts, we find that section 36(1) (vii) of the said Act clearly stipulates that the said deduction is allowed provided the bad debt is written off as irrecoverable in the accounts of the assessee for the concerned previous year. This is, however, subject to the provision of sub-section (2) of section 36 of the Act. Nothing has been pointed out before us to indicate that any of the provisions of sub-section (2) of the Act would come in the way of the assessee in the facts of the present case. It is also an admitted position that the assessee had, in fact, written off the bad debt as irrecoverable in her accounts in the relevant previous year. The only argument sought to be raised on behalf of the Revenue was that the Reserve Bank of India's pe....