M RAMAN PILLAI Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THIS is a reference by the Income-tax Appellate Tribunal, Madras lunch, under section 66 (1) of the Indian income-tax Act, 1022. The assessment year concerned is 1959-60; and the accounting period, the twelve months ended 31-31959. The question referred is: "whether the purchase and sale of part of the property constituted an adventure in the nature of trade, the profits from which, could be taxed?"

(2.) THE assessee agreed to purchase 92 cents of land In Trivandrum with the buildings thereon from one J. M. Sawyer for Rs. 1,40,000/ -. The agreement was on 25-4-1958 and the advance paid an that day was Rs. 5,000/-, The arrangement was that the sale should he completed by 30-8-1958. It was effected within that time, by a sale deed dated 23-8-1958.

(3.) SUBSEQUENT to the agreement on 25-4-1058 the assessee entered into the following transactions: