CHANDRAVATI ATMARAM PATEL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this case, at the instance of the assessee, the following question has been referred to us for our opinion :

(2.) THE facts giving rise to this reference are as follows : The assessment year under reference is 1969 -70, the relevant previous year of account being Samvat year 2024 which ended on October 21, 1968. The assessee is an individual and she and one, Shantaben Dahyabhai Patel (wife of the assessee's husband's brother) jointly purchased two plots of land bearing survey Nos. 51/1/1 and 51/1/2/2/2 of Changispur village. These two plots were subsequently given final plot No. 65 of the Town Planning Scheme No. 20 admeasuring about 2,360 square yards. The assessee had one -half share in the land bearing plot No. 65. The assessee agreed to sell the land of plot No. 65 to Messrs. Amit Corporation, a partnership firm. Amit Corporation agreed to sell the land to Manav Flats Co -operative Housing Society Ltd. under an agreement of sale dated January 9, 1968. Thereafter, by a sale deed dated September 4, 1968, the assessee sold her half undivided share in the said plot of land, namely, 1,180 square yards of land, to Manav Flats Co -operative Housing Society Ltd. The sale deed was also executed by the partners of Messrs. Amit Corporation as confirming parties. The land was sold for Rs. 1,18,000.

(3.) AGAINST the order of the Income -tax Officer, the assessee went in appeal before the Appellate Assistant Commissioner. By his order the Appellate Assistant Commissioner held that the land in question continued to be agricultural land up to the time of its sale and, therefore, no tax on capital gains could be levied. He, therefore, allowed the appeal of the assessee and set aside the order of the Income -tax Officer.