COMMISSIONER OF INCOME TAX Vs. SHASHI CHARLA

JUDGEMENT

(1.) These appeals filed by the revenue pertain to the block period 01.04.1996 to 24.09.2002 and arise out of the Income Tax Appellate Tribunal?s order dated 29.12.2008 in IT (SS) A Nos. 92, 93, 94 and 95/Del/2007.

(2.) A company by the name of Ambitious Gold Nibs Company Private Limited (hereinafter referred to as ?Ambitious Gold?) acquired a property measuring 2829 sq. yds at C-101 Maya Puri Industrial Area on 17.01.1966 from the DDA. The said property was sold by the said company on 29.11.1999. During search operations conducted in the residential premises of the assessees herein, who are directors in Ambitious Gold, a document entitled "family arrangement" and which purported to have been reduced to writing on 01.09.1997, was recovered. The said document was apparently effective from 31.07.1992. According to the assessees, by virtue of the said family arrangement, half of the company?s said property came to the share of the present assessees and the other half went to the share of another family group. The half that came to the share of the present assessees was sold for an amount of Rs 2.09 crores. The Assessing Officer assessed capital gains at the hands of the present assessees on the basis of the said seized document.

(3.) Thereafter, the matter travelled to the Income-tax Appellate Tribunal on the question of what would be the proper cost of acquisition of the said property so as to arrive at the correct computation of capital gains at the hands of the assessees. The assessees herein sought to invoke the provisions of Section 49(1) of the Income Tax Act, 1961 (hereinafter referred to as ?the said Act?). The said plea was accepted by the Tribunal and the revenue is in appeal before us on this issue.