JUDGMENT:

S.B. SINHA, J :

1. Leave granted.

2. The Appellant herein is an assessee under the Income Tax Act. It is an HUF. For the assessment year 1998-99, an income of Rs.30,80,030/- was declared by it, inter alia, showing a long term capital loss of Rs.34,12,000/- .The said capital loss was said to have arisen on account of sale of property being land and building known as Jekison Niwas, 220 Walkeshwar Road,Mumbai. Admittedly, the Appellant had 1/4th share therein. It entered intoan agreement for sale of undivided 1/4th share in the said property for a sum of Rs.8 crores with one M/s Layer Exports Pvt. Ltd.. For the purpose of valuation of the said property, one Shri U.D. Chande, a registered valuer,was appointed. On 01.04.1981, the value of the said 1/4th share in the property was determined at Rs. 2,52,00,000/-. In the said valuation report, it was stated that the purpose was valuation for computation of capital gains. The report was filed in the prescribed form. All the required particulars/information were furnished. In the said report, description of the property, location thereof, whether situated in residential/commercial/mixed/industrial area, and classification the