COMMISSIONER OF INCOME TAX Vs. VIJAY TRANSPORT CO

JUDGEMENT

(1.) AS directed by this court, the Income-tax Appellate Tribunal, Jabalpur Bench, Jabalpur, has referred the following question of law to this court for its opinion :

(2.) AT the time of hearing, learned counsel for the parties stated that the matter arising in this case also came up for consideration before this court in CIT v. Amar Transport Services [1986] 162 ITR 1. A Division Bench of this court, while considering the nature of a transaction similar to that entered into by the assessee, held that the transaction was one of sale. Learned counsel for the assessee was unable to point out any reason for taking a view different from that in [1986] 102 ITR 1. Following that decision, therefore, it must be held that the Tribunal was not right in holding that true nature of the transaction was that of exchange only and not of sale. The Tribunal was, therefore, not justified in deleting the addition of Rs. 68,821 which was added as profit under the second proviso to Section 10(2)(vii) of the Act.