Commissioner of Income Tax vs Dr. Karni Singh

Arijit Pasayat, C.J.—Heard learned counsel for the Revenue. We need not go into the factual aspects in detail to answer the following question which has been referred at the instance of the Revenue, by the Income Tax Appellate Tribunal, Delhi Bench "E" (for short "the Tribunal"), u/s 256(1) of the Income Tax Act, 1961 (for short "the Act"), for the opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that Section 52(2) of the Income Tax Act, 1961, was not applicable to the case of the assessed ?"

The Tribunal recorded a categorical finding that the fair market value of the property was Rs. 11 lakhs as declared by the assessed or as shown in the sale deed. The ratio of the decision of the apex court in K.P. Varghese Vs. Income Tax Officer, Ernakulam and Another, is fully applicable to the facts of the present case. Therefore, the question referred is answered in the affirmative, in favor of the assessed and against the Revenue.

The reference application stands disposed of.