FLORENCE CHAUDHARI Vs. STATE OF M P

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the I.T. Act, 1961, made by the Income -tax Appellate Tribunal at the instance of the Dept. referring for our answer the following questions of law :

(2.) THE relevant assessment years are 1964 -65, 1965 -66, 1966 -67 and 1967 -68. The relevant previous years are the corresponding previous financial years. The assessee is a partnership firm and has been assessed for these years as unregistered firm but treated as a registered firm under Section 183(b). The assessee -firm consists of two partners, namely, Purandeo Sindhwani and Lalit Mohan Sachdeva.

(3.) SOON after the purchase of the aforesaid survey numbers, the vendees framed a scheme for selling the entire land by dividing it into building plots and the land was plotted out into 181 plots. The scheme was not approved by the Town Planning Board on 24th April, 1962. The colony which was to come up by sale of the building plots was named in the scheme as Sachdeva Nagar. The plots in this scheme were divided into four series, viz., A to D.