COMMISSIONER OF INCOME TAX Vs. A.K. JAIN

JUDGEMENT

(1.) This appeal under Section 260A of the Income Tax Act, 1961 (Act, for short) preferred by the Revenue in the case of A.K. Jain pertains to the block assessment period 1988-1989 to 1998-1999. By order dated 14th May, 2007, the following substantial questions of law were framed for consideration:-

(2.) As far as question (b) is concerned, the same relates to three transactions entered into by the respondent-assessee in respect of property Nos. 102/C-9, Sector 8, Rohini, 216, Block D, Lok Vihar, Delhi and 117/D-12, Sector 8, Rohini (hereinafter referred to as the first, second and third property).

(3.) The first property, admeasuring 158.73 square meters, was purchased by the assessee on 5th June 1989 from A.K. Jain and V. K. Jain, s/o S. K. Jain, for Rs. 3,00,000/-. No construction was carried out on this plot. The property was sold in the same year for Rs. 3,01,000/-. A capital gain of Rs. 1,000/- was declared for the Income Tax Return for the Assessment Year 1990-91. The second property was jointly purchased with J. K. Jain for a total consideration of Rs. 8.11 lacs. The assessee paid a sum of Rs. 4,05,500/- for his share. The property was thereafter sold on 22nd October, 1993 for Rs.8.20 lacs. In respect of the said property, the respondent-assessee had shown and declared capital gain of Rs.4,500/- in the return of income for the assessment year 1994-1995. As far as the third property is concerned, the same was purchased for Rs.1,62,000/- on 12th January, 1991 and was sold on 13th April, 1993 for Rs.1,90,000/-. The gain from sale of this property was declared as capital gain in the return for the year 1994-95.