M RAMAN PILLAI Vs. COMMISSIONER OF INCOME-TAX
LAWS(KER)-1963-8-5
HIGH COURT OF KERALA
Decided on August 21,1963

M.RAMAN PILLAI Appellant
VERSUS
COMMISSIONER OF INCOME-TAX Respondents


Referred Judgements :-

PICKFORD V. QUIRKE [REFERRED TO]


JUDGEMENT

- (1.)THIS is a reference by the Income-tax Appellate Tribunal, Madras lunch, under section 66 (1) of the Indian income-tax Act, 1022. The assessment year concerned is 1959-60; and the accounting period, the twelve months ended 31-31959. The question referred is: "whether the purchase and sale of part of the property constituted an adventure in the nature of trade, the profits from which, could be taxed?"
(2.)THE assessee agreed to purchase 92 cents of land In Trivandrum with the buildings thereon from one J. M. Sawyer for Rs. 1,40,000/ -. The agreement was on 25-4-1958 and the advance paid an that day was Rs. 5,000/-, The arrangement was that the sale should he completed by 30-8-1958. It was effected within that time, by a sale deed dated 23-8-1958.
(3.)SUBSEQUENT to the agreement on 25-4-1058 the assessee entered into the following transactions:
(a) He agreed to sell 7 cents from the area in one N. G. Raghavan Nair, with the building thereon, for Rs. 13,300/ -. He received an advance of rs. 8,000/- on 20-8-1958. The sale was completed and the balance of the consideration was paid to the assessee on 13-9-1958. (b) He agreed to sell 31/2 cents from the area to the Bank of New India limited for Rs. 14,000/-on 23-8-1958 and received an advance of Ks. 13,900/ -. The safe was completed and balance of the consideration was paid to the assessee on 26-8-1958, (c) He agreed to sell 5 cents from the area to one Yeonis Salt on 23-81958, with the building thereon, for Rs. 20,000/- and received the whole amount on that date. (d) He sold 7 cents from, the area to one Dr. S. H. Balakrishna Pillai for rs. 13,300/- on 13-9-1958.

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