SAHARAJ TEA CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this application under Section 256 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the petitioner has prayed for calling for a statement of the case from the Income-tax Appellate Tribunal, Gauhati, on the following proposed questions of law :

(2.) THE assessee-petitioner is M/s. Sahara] Tea Company.

(3.) THEREAFTER, the department filed two appeals against the aforesaid orders of the Appellate Assistant Commissioner before the Income-tax Appellate Tribunal. The Tribunal discussed the facts of the case in its common order and has observed that the sale deed and the deed of agreement clearly showed that the sale deed was executed with effect from the 1st day of January, 1962, that according to the deed of agreement dated March 31, 1962, the purchaser was entitled to the sale proceeds of the tea manufactured after January 1, 1962, relating to the tea season 1962, subject to the deduction of reasonable expenditure incurred by the vendor in connection therewith and that the ownership of the tea estate was to pass to the purchaser after execution and registration of the sale deed with effect from the 1st day of January, 1962. It was further observed by the Tribunal that on execution of the sale deed the possession of the movable and immovable properties were given to the purchaser. After considering the materials on record, the Tribunal came to the finding that neither Messrs. Saharaj Tea Company nor J. Ahmed alone was the owner of the Seconee Tea Estate in the assessment year 1962-63. The Tribunal also held that J. Ahmed was neither the owner of the Seconee Tea Estate nor did he carry on the business in the calendar year 1962 and on that basis the appeal filed by the department in the case of J. Ahmed was dismissed.