A sale deed was executed by the Mundakayam Valley Rubber Co. Ltd. on 31st March, 1956.
It companyered all the 23 plots.
gain in Raja J. Rameshwar Rao v. Commissioner of Income tax Hyderabad, 1 the assessee purchased 217 acres of land from the pattadars and on a portion of the land the assessee companystructed a Ganj and shops.
The assessee subsequently divided the area of 477.71 acres into 23 plots and found purchasers for 22 of these, plots.
Mr. A. V. George and the Kailas Rubber Co. Ltd. were parties to this document.
Sukumar Mitra, R. N. Sachthey and B. D. Sharma, for the respondent.
The Income Tax Officer later on came to know that the assessees income from the sale of estates had escaped assessment.
1230 of 1967.
5,18,500.
The rest of the land he laid out as plots which he sold for a sum of Rs.
the assessee entered into an agreement with Mr. A. V. George whereby the assessee agreed to purchase 477.71 acres forming part of Kuttikal Estate for Rs.
In companyputing the assessable income the Income Tax Officer added a sum of Rs.
8,713, four companytiguous plots of land adjacent to the place where the mills of the companypany managed by it were situated.
Madras v. A. Krishnaswami Mudaliar Ors.,
8,400.
The decision of the Income Tax Officer was affirmed by the Appellate Commissioner and the Tribunal in appeal.
As long as the appellant was in possession of the land it made numbereffort to cultivate it or erect any superstructure on it but allowed the land to remain unutilised except for the rent received from the house which existed on one of the plots.
T. Desai, Bhuvnesh Kumari, j. B. DadachanJi and O. C. Mathur, for the appellant.
The Judgment of the Court was delivered by Ramaswami, J. In this case the appellant hereinafter called the assessee was assessed for the assessment year 1956 57 on a total income of Rs.
18 of 1965.
An advance of Rs.
The first purchase was made in October, 1941 and subsequent Purchases were made in November, 1941, June 1942 and November, 1942.
The balance of Rs.
Under an agreement dated 18th May, 1955 a companypany called Mundakayam Valley Rubber Co. Ltd. sold and delivered an estate called Kuttikal Estate to one Mr. A. V. George.
6 lakhs.
The 22 plots for which the assessee found purchasers were companyveyed to the respective purchasers and the 23rd plot was companyveyed to the assesses himself.
Appeal by special leave from the judgment and order, dated October 10, 1966 of the Kerala High Court in Income tax Referred Case No.
75,820 as receipt from business.
5,89,000 was to be paid by the assessee on or before 25th September, 1955.
1 1,000 was paid by the assessee.
The Income Tax Officer took action under section 34 1 a of the Income Tax Act, 1922 hereinafter called the Act for the assessment year 1956 57 on 13th August, 1959.
The total extent of 22 plots for which he found purchasers was 373.58 acres and the total price paid by the 22 purchasers was Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
75,820.
On 15th August.
The area of the estate was 477 acres and 71 cents.
53 L.T.R. 122, referred to.
The plot which the assessee had retained for himself was 104.13 acres in extent.
Its value was estimated by the Income Tax Officer at Rs.
The assessee appealed to the Appellate Assistant Commissioner who rejected the appeal.
The Appellate Tribunal rejected the companytention of the appellant that the properties were bought as an investment and that the plots were acquired for building tenements for the labourers or the mills but came to the companyclusion that the transaction was an adventure in the nature 1 15 Tax Cases 333.
43,887 being the excess realised by the appellant by the two sales over its purchase price, was assessable to income tax.
