BUDDAIAH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Income-Tax Appellate Tribunal, Bangalore Bench has referred the following question of law for our opinion under Section 256(1) of the Income-Tax Act, 1961, at the instance of the assessee :

(2.) The Assessee is a HUF owning some agricultural lands in Kodihalli village situated within the urban agglomeration of the city of Banglore. Sy. Nos. 193, 206. 207/1 of the said village were acquired by the City Improvement Trust Board, Bangalore, in pursuance to the preliminary Notification under Section 4 and final Notification dated 19-8-1964 issued under Section 6 by the Land Acquisition Officer for on behalf of the City Improvement Trust Board (CITB). The possession of Sy. No. 206 was taken by the LAO., on 2i-4-l973, and Sy. Nos. 193 and 207/1 on 8-11-1973.

(3.) In the assessment of the assessee for the assessment year 1974-75, the Income Tax Officer (ITO) brought to tax, under 'capital gains', the compensation received by the assessee in respect of the acquisition of three survey numbers by the CITB. The assessee chanllengcd the assessment before the Appellate Assistant Commissioner (AAC) who upheld the assessment in so far as Sy. Nos. 193 and 207/1 was concerned. In respect of Sy. No. 206, he held that the award was passed on 29-3-1973 and that, therefore, the transfer took, place during the accounting year relevant for the assessment years 1973-74 and not 1974-75. The assessment relating to 'capital gains' for tbisyearin respect of the sail Survey number was, therefere, directed to be modified.