GOPAL C SHARMA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) FACTS :

(2.) APPEAL , touching issue in question, filed by assessee dismissed as time barred. Same issues dealt with by Tribunal while deciding revenue's appeal and finding recorded. Further question touching the issues referred by Tribunal under s. 256(1).

(3.) THE transaction of compulsory acquisition if land is respect of a capital asset could never be viewed as an adventure in the nature of trade. The assessee had no choice but to claim compensation for acquisition of the said land. Even as far as the sale of land to V is concerned, the said lands were already subject -matter of prior agreement of sub -lease and prior agreement of sale entered into by the predecessor -in -title of the assessee in favour of the said purchaser was binding on the assessee. The lands did not constitute stock -in -trade of the assessee. As far as these lands are concerned, the assessee had no choice but to complete the sale of lands in favour of V and file a claim for compensation with the Special Land Acquisition Officer in respect of lands under acquisition. These transactions did not constitute, therefore, adventure in the nature of trade and were liable to be taxed to capital gain tax and not on the footing of 'business income'. Conclusion :