ABDUL SATHER SAIT Vs. ITO ERNAKULAM

JUDGEMENT

(1.) An assessee to income tax has challenged the order of assessment imposing tax on him for the assessment year 1963-64 to the extent that the order, Ext. P1 has imposed tax on alleged profits and gains arising from the transfer of capital asset effected in the previous year. It is admitted that there has been a transfer in the previous year. The assessee transferred the capital asset to his son for a consideration of Rs. 60,000. The capital asset so transferred is a valuable building in Ernakulam town. This building has been valued for the purpose of the wealth tax at Rs. 95,600. The property was transferred to the minor son of the assessee for a consideration of Rs. 60,000. Because of the difference between the real value of the asset and the consideration received, the petitioner - assessee was assessed to gift tax for the year 1962-1963 on the difference between the sum of Rs. 95,600 and 60,000 the first being the value fixed for the building in question taken as the real value.

(2.) On the above facts, the petitioner has also now been taxed under the Income Tax Act on a sum of Rs. 35,600 being the difference between the value of the building as fixed for wealth tax purposes and the value of the building as shown in the document of transfer.

(3.) The relevant part of the order Ext. P 1 is in these terms :