- (1.) THIS judgment will dispose of Income-tax References Nos. 98, 99 and 100 of 1974.
(2.) BRIEF facts giving rise to these references are that, the assessee is a HUF constituted by Shri Chanan Ram, karta, and his sons, Shri Niranjan Dass, Nathu Ram and others. The previous year relevant to the assessment year 1963-64 ended on 31st March, 1963. The assessee showed a loss of Rs. 1,394. The ITO determined the total income at Rs. 1,42,560.
(3.) THE assessee had executed on 14th June, 1962, a registered sale deed in favour of a co-operative society known as the Mandi Dabwali Haryana Handmade Paper and General Works Production-cum-Sale Co-operative Industrial Society Ltd. purporting to sell for Rs. 1,31,400, the assessee's gram-dal and cotton ginning factory at Dabwali, During the assessment proceedings, the assessee pleaded that the said sale was a sham transaction and there was no capital gain accruing to the assessee. The ITO disbelieved the assessee's version. The appeal by the assessee before the AAC failed.;