GHOSH H B Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Allahabad Bench, Allahabad, has referred the following question for our opinion:

(2.) THE facts leading up to this case may be shortly stated. THE assessee received a plot of land measuring 5 kattas 6 chits and 36 square feet in Lake Garden Area in the Bangur Land Development Scheme at Calcutta from his brother, Sri H. S. Ghosh, on July 2, 1963. This plot was sold by the assessee to Sri J. C. Sarvadhikari for a sum of Rs. 20,000 on March 21, 1964. THE purchaser was the father-in-law of the assessee's daughter. THE Income-tax Officer took the View that inasmuch as the assessee had paid an amount of Rs. 21,123 and the fair market value of the property on the date of transfer was not less than Rs. 42,000, the provisions of Section 52 of the Act were applicable and as Such he imposed capital gains tax on the assessee in respect of this transaction. THE decision was reversed by the Appellate Assistant Commissioner. THE Tribunal has, however, taken the view that inasmuch as the consideration for which the assessee had sold the property was less than the fair market value, it could be inferred that the transaction was effected with the object of avoidance or reduction of the liability to tax. On this conclusion, it held that the case was covered by Section 52(1) of the Act and has reversed the order of the Appellate Assistant Commissioner and upheld the order of the Income-tax Officer.

(3.) WE, therefore, answer the question by saying that the provisions of Section 52 were riot attracted, and the assessee is not liable to pay tax on the capital gains. The assessee is entitled to his costs which is assessed at Rs. 200. Counsel's fee is assessed at the same figure.