| Case ID |
0b983211-5be7-447c-b9ed-42f740cd2c48 |
| Body |
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| Case Number |
APPEAL No. 643 OF 1975 WITH F.A. No. 644 OF 1975 |
| Decision Date |
Mar 05, 1977 |
| Hearing Date |
|
| Decision |
The court remanded the matter back to the Tribunal for further hearing and disposal according to law, emphasizing that the incidental expenses like stamp duty, brokerage, and legal fees do not form part of the price in determining fair market value, thereby not allowing deductions for those expenses. The Tribunal had to provide clear findings on permissible expenditures regarding the encroachment, cost of road construction, and filling up costs. The case was set aside due to insufficient findings of fact and the need for further clarification on the allowable deductions. |
| Summary |
In the case between the Commissioner of Income Tax and Ganesh Builders, the Bombay High Court focused on the application of Section 269C of the Income-tax Act, 1961 regarding the acquisition of immovable property. The main issue was whether the apparent consideration for the land sold at Rs. 65 per square yard was significantly lower than its fair market value, estimated at Rs. 150 per square yard. The competent authority's order for acquisition was challenged, leading to a Tribunal's intervention which set aside the acquisition order after determining that the margin between the apparent consideration and the fair market value was less than 15%. The court emphasized the role of incidental expenses, clarifying that items such as stamp duty and legal fees cannot be deducted from the sale price for determining the fair market value. The case highlights the importance of clear findings in tax law cases and the need for proper assessment of allowable deductions. Keywords include 'Income Tax Act', 'fair market value', 'acquisition of property', 'legal fees', and 'stamp duty'. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
Deshmukh, J.,
Mridul, J.
|
| Lawyers |
Not available
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Ganesh Builders
|
| Citations |
1979 SLD 844 = (1979) 116 ITR 911
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
269C
|