KRISHNA IYER Vs. ADDITIONAL INCOME TAX OFFICER

JUDGEMENT

(1.) This petition under Art.226 of the Constitution of India challenges the correctness of Exts. P1, P2 and P2(a) in so far as they relate to the assessment of capital gains. Ext. P1 is the order of the Commissioner of Income Tax, Ernakulam, dismissing the revision petitions filed by the petitioner against Exts. P2 and P2(a). Ext. P2 is the assessment order in respect of the assessment year 1960-61 (accounting period: the twelve months ended on 31-3-1960) and Ext. P2(a) is the assessment order in respect of the assessment year 1961-62 (accounting period: the twelve months ended on 31-3-1961.)

(2.) The petitioner purchased in 1959 a plot of land measuring about 57 cents with a building and some trees thereon for Rs. 67,400/-. He sold portions of the land in the accounting periods relevant to the assessment years with which we are concerned; and the Income Tax Officer computed the capital gains at Rs. 5,500/- for the assessment year 1960-61 and at Rs. 10,500/- for the assessment year 1961-62.

(3.) S.12B of the Indian Income Tax Act, 1922, provides that tax shall be payable under the head capital gains in respect of any profits or gains arising from the sale, exchange, relinquishment or transfer of a capital asset effected after the 31st day of March, 1956, and that such profits and gains shall be deemed to be income of the previous year in which the sale, exchange or relinquishment or transfer took place. The contention of the petitioner is that the land concerned is agricultural land and that as a result the section is not attracted to the profits or gains arising from the sales he made.