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"I had purchased Flat No. 101 in Shirin Apartment at 211/219 Tardeo Road, Mumbai - 400 027 from Mahendra Builders Pvt. Ltd., who in turn had purchased the same from its sister company named M/s. Tardeo Properties Pvt. Ltd.

While proceedings for issue of above certificate was going on Shri Suraj Narain Kanav and Smt. Sarladevi Kanav claimed possession of the aforesaid flat on the basis of agreement of purchase of said flat they had with M/s. Tardeo Properties Pvt. Ltd. They had filed copy of the said agreement with the Appropriate Authority and reported certain facts."

(i) Flat in question is known as Flat No. 101, in building No. 3 of 'Shirin Apartments' at Tardeo Road, (for the sake of convenience this flat hereinafter is referred to as 'flat');

(h) The flat originally was owned by M/s. Tardeo property Private Limited (hereinafter referred to as M/s. TPPL);

(iii) As per agreement to sell dated 6th May, 1981 the flat was agreed to be sold by M/s. TPPL to 'third party' for total consideration of Rs. 2,09,050 to be payable in various instalments. The evidence regarding payment of certain instalments had been furnished by the assessee in the paper books);

Dated 27-12-1992 To Shri Dhruv Ranalal Shah & Shri Nanalal Kapurchand Shah, 403/4, Shivam, Dungaray Road, Bombay-400006 Sub : Possession of flat No. 101 on the first floor of Shirin Apartment Tardeo Road, Bombay - 400007.

Dear Sir, We have today handover the vacant and peaceful possession of flat No. 101 on 1st floor of Shirin Apartments, bldg., No. 3, Tardeo Road Bombay-400007, in as is where is conditions.

Yours faithfully, Sd/ (for MBPL)"

(viii) On 30-12-1992, application in form 37(1) under section 269UC of the Act was filed with appropriate authority, on 26-2-1993, the Appropriate authority gave its No Objection Certificate under section 269UL of the Act.

3. The facts relating to the controversy are that M/s. Tardeo Property Pvt. Ltd. (hereinafter referred to as TPPL) was the owner of a flat No. 101, situated at First Floor in building No. 3 of Shirin Apartments, 211/219, Tardeo Road, Mumbai-7. This flat was sold by M/s. TPPL to Mrs. Sarladevi Surajnarain Kanav & Mr. Ajay Suraj Narain Kanav for a sum of Rs. 2,09,050 vide agreement dated 6-5-1981 on instalment basis and certain instalments were paid by the above purchasers. M/s TPPL, again sold the very same flat to M/s. Mahendra Builders Pvt. Ltd. (hereinafter referred to as MBPL) having its office at Mahendra Chambers, 134/136, Dr. D.N. Road, Mumbai vide agreement dated 10-4-1986 for a total consideration of Rs. 9,45,000. Mr. Mahendra V. Shah was the director of both these companies, viz. TPPL & MBPL and, therefore, both the above referred agreements for sale were signed by him in his capacity as director of both the companies. On the basis of the later agreement dated 10-4-1986 with M/s. MBPL, the society of the flat purchasers was registered on 5-7-1990 and M/s. MBPL was shown as the purchaser of the flat No. 101 and accordingly shares of the society were issued in favour of M/s. MBPL. Subsequently on 27-12-1992, the assessee, alongwith his father Mr. Nanalal Kapurchand Shah (whose name was recorded for the sake of convenience) jointly agreed to purchase share certificate No. 34 containing five equity shares of Rs. 50 each bearing distinctive numbers from 166 to 170 (both inclusive) of Shirin Co-operative Housing Society Ltd. together with the right to use and occupy premises bearing No. 101 on the 1st floor of Shirin Apartment No. 3 situated at 211/219, Tardeo Road, Mumbai-7 from MBPL for an aggregate consideration of Rs. 37,50,000. As per this agreement, an amount of Rs, 36,65,000 was paid to M/s. MBPL on execution of the said agreement. The assessee agreed to pay a further sum of Rs. 50,000 within the period of one week from the date of receipt of the order of the Appropriate Authority under the Income Tax Act. A further amount of Rs. 35,000 was also to be paid by the assessee as transfer fees payable to the society for transfer of the shares on behalf of the transferor, M/s. MBPL. Shirin Co-operative Housing Society Ltd. gave no objection certificate for transfer of the shares of MBPL in respect of the said flat in favour of the assessee vide their letter dated 27-12-1992. The Appropriate Authority, acting on an application in form 37-I under section 269UC of the Act, issued a no objection certificate on 26-2-1993 for transfer of said shares and said flat by M/s. MBPL to the assessee.