COMMISSIONER OF INCOME TAX Vs. AMONBOLU RAJIAH

JUDGEMENT

(1.) THE assessee is an individual and is concerned with the assessment year 1965-66, for which the relevant accounting year is ending with November 4, 1964.

(2.) THE Zilla Parishad owned a piece of land at Malkajgiri. THE Zilla Parishad intended to construct a building for Balika Unnata Patashala. THE assessee entered into an arrangement with the Zilla Parishad to donate necessary funds in order to construct the school building. A contractor, therefore, was appointed. THE assessee was advancing from time to time various amounts to the contractor for the purpose of constructing the school building. THE amounts were thus advanced between April 13, 1964, and October 28, 1964. THE total amount thus advanced came to Rs. 16,557. THE assessee debited that amount to the school account. THE Zilla Parishad, who was also the owner of the land, took possession of the building from the contractor and commenced the Girls High School in that building.

(3.) ON an application by the Commissioner under Section 256(1) of the Act, the following question has been referred to us :