COMMISSIONER OF INCOME TAX Vs. DALMIA R DECD

JUDGEMENT

(1.) THE statement of case for these four references sets out four questions but later on states that the fourth question was not being referred. THE result is that there are three questions referred to us which are as follows :

(2.) AT the hearing, it was brought to our notice that all these three questions are covered by the previous decisions of this Court. As far as question No. 1 is concerned, it is covered by the decision dated 2nd November, 1983, in ITR Nos. 189 and 190 of 1975 (CIT vs. R. Dalmia (1987) 163 ITR 519 (Delhi)). The answer to the question was that the overall financial position had to be considered with reference to the balancesheet as adjusted in respect of the sum of Rs. 47.31 lakhs. The same is the position for the first question in the present case because the sum of Rs. 47.31 lakhs has to be adjusted. So the answer to the first question is in the affirmative, in favour of the assessee and against the Department. As far as question No. 2 is concerned, it has been dealt with in several decisions of this Court. They are ITR No. 6 of 1974 decided on 18th December, 1981 (CIT vs. R Dalmia (1987) 163 ITR 524 (Del)); ITR No. 103 of 1974 decided on 16th December, 1981 (CIT vs. R. Dalmia (1987) 163 ITR 525 (Delhi)) and ITR Nos. 189 and 190 of 1975 decided on 2nd November, 1983 (CIT vs. R. Dalmia (supra). The answers have been in the negative, in favour of the assessee and against the Department with the result that the municipal value has to be taken as the annual letting value.