Sen, A.C.J. - (1.) These are four reference applications under section 256(2) of the Income Tax Act, 1951 by the Commissioner of Income tax, Rajasthan II, Jaipur, for requiring the Income Tax Appellate Tribunal, Jaipur Bench to state a case and refer a certain question of law said to arise from its consolidated order in Income Tax Appeals No. 1050, 1051, 1052, 1092, 1095, 1096, 1097, and 1098 J P 73 71 dated 18.3.1973, to the High Court for its opinion namely:- "Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that the provisions of section 52(2) of the Income Tax Act, 1961 were not attracted in this case and further in directing the Income Tax Officer to compute the capital gains on the basis of the consideration declared by the assessee" ? The Tribunal has by its order dated 10-10-1975 declined to make a reference to the High Court on the ground that no question of law arises therefrom.
(2.) The circumstances leading to these proceedings may be, briefly, stated : By a registered sale deed dated 31-5-1958 Anandsingh Kachhwaha purchased a valuable plot of land measuring 4500 sq. yards situate on Sans archandra Sen Road, off Mirza Ismail Road at Jaipur, in the names of his two sons Yashwant Singh and Mahendra Singh. The plot was purchased under two sale deeds, one in the name of Yashwant Singh in respect of 2250 sq. yards and the other in the name of Mahendra Singh in respect of 2250 sq. yards. Yashwant Singh, by a registered deed of gift dated July 30, 1969, made gift of 450 sq yards of land out of 2250 sq yards owned by him to Smt. Geeta, wife of his younger brother Mahendrasingh. Mahendrasingh, by a registered deed dated July 29, 1969, made gift of about 749 sq yards each to Smt. Sushiladevi, wife of his elder brother Yashwant Singh and Pradyuman Singh, minor son of Yashwant Singh, Yashwant Singh, Mahendra Singh and Sushila Devi sold the aforesaid land to M/s Balkrishna Cornmercial Co. of Calcutta on August 2, 1959. Yashwant Singh sold land to the said company at Rs. 45/- per sq. yard, Mahendra Singh at Rs. 59/- per sq. yard and Smt. Sushiladevi at Rs. 40/- sq. yard Pradyuman Singh, in whose favour Mahendra Singh had made a gift of 749 sq. yards of land, also sold this land to the said M/s Balkrishna Commercial Company on 9.4.1970 at Rs. 40/- per sq. yard. In their returns for the assessment year 1970-71, Yashwant Singh Mahendra Singh, Smt. Sushila Devi and Pradyuman Singh disclosed the capital gains made by them as a result of the aforesaid transactions.
(3.) The Income Tax Officer was of the view that the rates at which the aforesaid assessees had sold their lands were very low as compared to the prevailing market rate in the area in which the land was situated. As pointed out above, the land was on Sansar Chandra Sen Road, off the M.I. Road, which is a commercial area of Jaipur City where offices of leading business houses, banks, cinema etc. were located. In the view of the Income Tax Officer, the land sold by the assessee was in the near vicinity of this important business locality of Jaipur. The Income Tax Officer took into consideration four sale instances relied upon by the Revenue and was prima facie of the view that the rates at which the lands were sold were very low. He, therefore, addressed letters to the assesses disclosing his intention to approach the Inspecting Assistant Commissioner, Jodhpur Range, Jodhpur for his approval for invoking the provisions of section 52(2) of the Income Tax Act, 1961. He called upon the assessee to show cause why he should not take action as proposed by him.;