SAWANDAS DEVRAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference made by the Income-tax Appellate Tribunal referring for our answer the following questions of law :

(2.) THE reference relates to the assessment year 1975-76. THE facts stated are that the assessee purchased 43.18 acres of agricultural land from Moolchand and Idandas on December 16, 1970. This land was allotted to them in lieu of compensation. THE assessee in the proceedings for allotment was acting as an attorney of the vendors. THE land was allotted to the vendors on February 13, 1970, and sanad was granted by the Government on December 9, 1970. THE assessee is not an agriculturist nor were the vendors agriculturists. THE assessee had in the preceding two years purchased and sold certain properties. Shortly after the purchase of the land, the assessee proceeded to enter into agreements for sale by parcelling out the land into small portions. THEreafter, the assessee concluded the sales during the accounting period of 1.85 acres, 9.92 acres, 8.93 acres, 2 acres, 3.61 acres and 10.88 acres.

(3.) FOR the reasons given above, we answer the questions referred to us in the affirmative, in favour of the department and against the assessee. There will be no order as to costs.