Hegde, J. - (1.) This is an appeal by special leave. It arises from a decision of the Bombay High Court under Section 66 (2) of the Indian Income-tax Act, 1922 (in short 'the Act') declining to call upon the Tribunal to submit the question of law mentioned in the application.
(2.) The material facts of this case are as follows: The respondents purchased three plots of land measuring 1,62,825 sq.yds. from the Archbishop of Bombay. These three plots were situated in different localities. The purchase price for all these three plots together was Rs.10 lakhs. The sale deed does not mention separately the price of each plot. The purchase in question was made on December 21, 1960. Before the purchase was made the assessee paid an earnest money of Rs.50,000 and at the time of sale he paid another sum of Rs.25,000/- the balance amount was to be paid within three years from the date of the sale. At one time there was controversy whether the sale in question was an adventure in trade or not. That question has been decided against the assessee. The same is no more in dispute. All the authorities under the Act have proceeded on the basis that the purchase inquestion was an adventure in trade.
(3.) Out of the area purchased the assessee sold 48,398 sq.yds. on March 6, 1961 at the rate of R.15/- per sq.yd. The Income-tax Officer brought to tax what according to him is the profit earned by the assessee in the assessment year 1962-63 as a result of the sale effected on March 6, 1961. For determining the taxable profits he first determined the purchase price per sq. yard by dividing 10 lakhs of rupees by 1,62,825 sq. yds. The difference between the purchase price and the sale price was consdiered by him as the profits made and on that basis he assessed the assessee. The order of the Income-tax Officer was affirmed by the Appellate Assistant Commissioner. The Tribunal reversed the order of the Appellate Assistant Commissioner.;