COMMISSIONER OF INCOME TAX Vs. SUBODH KUMAR JAIN

JUDGEMENT

(1.) THIS is an income-tax reference under Section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue. The following, questions of law have been referred by the Tribunal for answer by this court :

(2.) THE brief facts giving rise to this reference are that the assessee was the owner of a Bungalow No. 427, South Civil Lines, Jabalpur, along with land appurtenant thereto. This property was acquired under Section 17(1) of the Land Acquisition Act, 1894. THE proposals to acquire the property was notified in the M.P. Official Gazette, Part I, dated October 19, 1973. THE notification for acquisition of the property was published during the period February 13, 1974, to February 18, 1974. THE final date of hearing was also fixed on March 12, 1974, on which date in the absence of any adverse claim, the property was alleged to have been acquired.

(3.) FOR the assessment year 1974-75, the Income-tax Officer reopened the assessment, taking the view that the property vested in the Government on the date of notification which in this case was March 12, 1974. The Income-tax Officer completed the assessment for this year, including in the total income, inter alia, a sum of Rs. 2,64,087 which was the capital gains determined by him on the transfer of the property. When the matter was carried in appeal, this action of the Income-tax Officer was confirmed by the Commissioner of Income-tax (Appeals).