COMMISSIONER OF INCOME TAX Vs. NATIONAL PROPERTIES LTD

JUDGEMENT

(1.) The facts found and/or admitted in this reference under Section 66(1) of the Indian. Income-tax Act, 1922, at the instance of the Commissioner of Income-tax, West Bengal I, Calcutta, are as follows :

(2.) On the 14th August, 1946, the assessee purchased 5/9ths share of an undivided garden house on the Ultadanga Main Road, Calcutta, with trees and tanks covering a total area of 30 bighas of land. Thereafter, in a partition suit filed by the assessee against the other co-owners, partition was effected under a decree passed by the 6th Subordinate Judge, 24-Parganas, and exact demarcation of the share allotted to the assessee was made. The assessee obtained about 17 bighas of land situated at 83, 84 and 86/2, Ultadanga Main Road, Calcutta. The cost of the property was Rs. 1,06,335 and with the expenses incurred in connection with the purchase added, the total came to a figure of Rs. 1,10,805. This value of the property was shown in the balance-sheet of the assessee up to the previous year ending on the 30th June, 1958.

(3.) On the 27th August, 1958, the land was acquired on behalf of the Calcutta Improvement Trust and an award of Rs. 7,00,822 was made in favour of the assessee by way of compensation.