COMMISSIONER OF INCOME TAX Vs. HARIDOSS PURUSHOTHAMDOSS

JUDGEMENT

(1.) AT the instance of the Revenue, the Tribunal referred the following question for the opinion of this court under section 256(1) of the Income-tax Act, 1961 :

(2.) THE assessee is a Hindu undivided family having income from business, property and other sources. During the year relevant to the assessment year, the assessee had sold vacant lands at Arumbakkam garden measuring 42 grounds for Rs. 2,10,000 in June 1972. THE property was known as "Gokul Bagh". In ascertaining the capital gains arising from the sale, there was dispute as to the cost to be taken for such lands. THE cost was worked out by the assessee at Rs. 4,000 per ground as the market value of the lands as on April 1, 1964, when they were taken over by the assessee from the firm in which it was a partner consequent on a partition in the family with effect from April 1, 1964.

(3.) IN that view of the matter, we answer the question referred to us in the negative and in favour of the Department. No costs.