COMMISSIONER OF INCOME TAX Vs. TRIVEDI V A

JUDGEMENT

(1.) THESE are references under the provisions of S. 256(1) of the IT Act, 1961. The common questions referred read thus :

(2.) MR . Jetly, learned counsel for the Revenue, submitted that the fifth question should not be answered in view of the judgment of the Supreme Court in CIT vs. V. Damodaran (1979) 13 CTR (SC) 191 : (1980) 121 ITR 572 (SC). Mr. Manohar, learned counsel for the assessee, submitted that the question would not be hit by the judgment in the aforementioned case, but, he stated, the assessee was not pressing for an answer to it. Accordingly, the fifth question shall not be answered.

(3.) ON 22nd March, 1963, the assessee entered into an agreement to purchase the Binaki land from one Rameshpuri. On 6th Dec., 1963, Rameshpuri obtained permission to convert it to non agricultural use. On 2nd Jan., 1964, 7.4 acres constituting part of the Binaki land were sold by Rameshpuri to the assessee for Rs. 10,763. On 31st Oct., 1964, 27.27 acres constituting the balance of the Binaki land were sold by Rameshpuri to the assessee for Rs. 39,237. The aggregate price for the Binaki land was, therefore, Rs. 50,000. On 31st May, 1965, the Binaki land was sold by the assessee to the Vidarbha Housing Board for Rs. 2,08,500.