COMMISSIONER OF INCOME TAX Vs. DHANANJAY RAO JADHAV

JUDGEMENT

(1.) A question of law has been referred for answer by this Court under S. 256(1) of the IT Act, 1961, at the instance of the IT Department.

(2.) BEFORE quoting the question and dealing with the same, the factual backgrounds be given as under : In a family partition, the assessee was allotted amongst others 6 bighas of agricultural land, situate at Bahodapur, district Gwalior. The land is within the municipal limits. By various sale-deeds, executed in favour of 44 persons between April, 1980 to December, 1980, different parcels of lands were sold through two commission agents.

(3.) IN appeal by the assessee, the AAC after examining the fact came to the conclusion that merely because the sales were through a broker with a view to get best possible price of the property, the transaction of sale cannot be held to be an adventure of the assessee in the nature of trade. The AAC referred to the assessment case of another co-parcener of the same family to hold that the profit earned can only be taxed as the capital gains and not as profit from any adventure or business.