COMMISSIONER OF INCOME TAX BOMBAY Vs. UNION LAND AND BUILDING SOCIETY PVT LTD

JUDGEMENT

(1.) THIS reference arises out of a common order passed by the Tribunal on 16th July, 1962, deciding five appeals before them. In two of those appeals, Income-tax Appeals Nos. 6036 and 6037 of 1961-62, the department was the appellant and in Appeals Nos. 5108-5111 of 1961-62, the Union Land and Building Society Ltd. , the assessee, was the appellant. The circumstances under which these appeals arose and the reference was made are briefly as follows :

(2.) THE second, third and fourth questions are as follows :

(3.) IN order to show how these questions arise it will be necessary to state some further facts. The assessee used to take from each intending purchaser of a bungalow an agreement agreeing to purchase the particular house and agreeing to aside by the terms and conditions mentioned on amount outstanding should not be taxed as the income of the assessee as there was no sale whatsoever and the assessee continued to remain the owner of the property which in the circumstances was never transferred to the purchaser. This question is, therefore, raised at the instance of the Commissioner.