C G THIMMAIAH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) : The Tribunal, Bangalore Bench, has referred the following question for the opinion of this Court under s. 256(1) of the IT Act, 1961 ("the Act") :

(2.) THE assessee is an HUF. THE assessment for the asst. yr. 1973- 74 was reopened under s. 148 of the Act and the assessee's income from the sale of trees grown on his lands was sought to be taxed as capital gains. THE assessee contended that he was a dealer in timber and that, therefore, his income from the sale of trees should be considered as income from business and the said income should not be brought to tax under the head "Capital gains".

(3.) THE only difference so far as this year is concerned is that the assessee did not sell the trees as such. THE trees, after felling, were dressed and sold. THE question is whether this mode of sale would make any difference as to the income therefrom. We do not think that it would make any difference.