- (1.) The Income-tax Appellate tribunal referred the following question (as directed by this court) to the High court of Patna under section 66(2) of the Indian Income-tax Act for opinion: " Whether, under the facts and circumstances of the case, the amount of Rs. 1,30,785.00 being the excess of sale proceeds of the building, plant and machinery over the written down value of the business' of the said newspaper publications could, in law, be termed to be income, profit and gain of the petitioner -
(2.) or some time there was difference of opinion in the High courts on the question whether it is open to the income-tax authorities in proceedings for assessment of tax to discard the legal character of a transaction and to determine " the substance of a transaction ". But it has now been settled by several decisions of this court that in taxing a receipt to income-tax the authorities are only concerned with the legal effect or character of the transaction and not the substance of the transaction.
(3.) see the Judgement of this court in Commissioner of Income-tax V/s. B.M. Kharwar (C.A. No. 1678 of 1966, decided on 13.08.1968).;