LILAVATI M AMIN Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THIS is a reference under section 256 (1) of the Income-tax Act, 1961. The assessment year involved is 1967-68 for which the previous year ended on March 31, 1967. The following question has been referred to us by the Income-tax Appellate Tribunal :

(2.) THE reference pertains to land situate in the City of Ahmedabad within the municipal limits. The land formed a part of a larger piece of land bearing Survey No. 3/1 admeasuring 1 acre 34 gunthas and Survey No. 1 admeasuring 1 acre in Changispur area of the City of Ahmedabad municipal Corporation. The then owner of this land entered into an agreement to sell this land to one Ramanlal Lalbhai Seth and others. The purchasers under the contract represented themselves as well as several other persons including the assessee. All these persons purchased this land collectively. The actual conveyance was executed on January 10, 1945.

(3.) FROM March 15, 1945, the Elis Bridge Town Planning Scheme was extended to this land. The land was divided into several plots, which were then renumbered. The land was divided by the co-owners into 14 plots after making a provision for roads. The plots were also fenced. The plan for division of the land into plots was approved by the Ahmedabad Municipal Corporation on january 14, 1949. Out of 14 plots, plot No. 8 admeasuring 1,594 square yards came to the share of the assessee and was transferred to her name in the Government records on December 13, 1951.