ALAPATI VENKATARAMIAH Vs. COMMISSIONER OF INCOME TAX HYDERABAD

JUDGEMENT

(1.) THE following Judgment of the court was delivered by :

(2.) THIS appeal by special leave is directed against the judgment of the High court of Andhra Pradesh answering the question referred to it under s. 66 of the Income Tax Act, 1922, against the appellant. The question referred to was 'whether on the facts and in the circumstances of the case a sum of Rs. 79,494.00 is assessable ascapital gains in the assessment year 1948-49.'

(3.) THE Appellate Assistant Commissioner observed that the fact that a part of the sale amount had not been realised was irrelevant. THEn he said that 'at one stage it was contended that there was no legal transfer of the buildings. machinery, etc. to the limited company. THEre is no substance in this contention also. THE limited company is said to have obtained a loan of more than a lakh of rupees from the Madras government on the basis that they were the owners of the buildings. machinery, etc. which they had purchased from the appellant. THE statement therefore that there was no legal transfer cannot be true. I am satisfied that the sum of Rs. 79,494.00 as returned by the appellant under the head capital gains was rightly included in the assessment.'