MOHAMMAD MEERAKHAN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a reference at the instance of the assessee by the Income tax Appellate Tribunal, Madras Bench, under S.66(1) of the Indian Income Tax Act, 1922. The assessment year concerned is 1955-57; and the accounting period, the twelve months ended on the 31st March 1956. The question referred is:

(2.) There was an agreement dated the 18th May 1955 by which the Mundakayam Valley Rubber Company Limited agreed to sell to one A. V. George a rubber estate called the Kuttikal Estate measuring 477.71 acres. A. V. George entered into that agreement on behalf of the Kailas Rubber Company Limited.

(3.) On the 15th August 1955 the assessee entered into an agreement with A. V. George to purchase the Kuttikal Estate for Rs. 6 lakhs and paid an advance of Rs. 11,000/-. The agreement provided that on payment of the balance of Rs. 5,89,000/- A. V. George will execute the sale deed himself or cause it to be executed by the Mundakayam Valley Rubber Company Limited in favour of the assessee or his nominees and that the stamp duty and registration charges will be borne by the assessee.