Bombay H.C : The assessee had entered into an agreement on November 8, 1977, for purchase of a flat on the 11th floor, 112-A, Mittal Towers, Nariman Point.

High Court Of Bombay

CIT vs. Vimal Lalchand Mutha

Sections 45, 256

Mrs. Sujata V. Manohar, & Dhanuka, JJ.

IT Appln. No. 157 of 1988

7th August, 1990 

Counsel AppearedG.S. Jetly, K.C. Sidhwa & Ms. Manjula Singh, for the Revenue : K.B. Bhujale & V.H. Patil , for the Assessee

MRS. SUJATA V. MANOHAR ,J.:

The assessee had entered into an agreement on November 8, 1977, for purchase of a flat on the 11th floor, 112-A, Mittal Towers, Nariman Point. Bombay, with Bharat Trading Corporation. She entered into a formal agreement with Bharat Trading Corporation on December 4, 1978. She obtained possession of the flat in June, 1981. No conveyance, however, was executed either in her favour or in favour of the co-operative society of the said building or any limited company in respect of the said building.

2. She entered into an agreement dated April 28, 1983, with Chanrai Uttamchand transferring her right, title and interest in the said flat to Chanrai Uttamchand. The assessee has thus transferred all her rights under the agreement of November 8, 1977, and/or December 4, 1978, in favour of Chanrai Uttamchand by virtue of the agreement dated April 28, 1983, between the assessee and Chanrai Uttamchand. The assessee thus held rights under the said two agreements of November 8, 1977 / December 4, 1978, for more than 36 months before transferring the same. The Tribunal has, therefore, rightly come to the conclusion that the capital gains were long-term gains. In view of these facts and the findings recorded by the Tribunal, there is no statable question of law. We, therefore, discharge the rule.

3. No order as to costs.

[Citation : 187 ITR 613]

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