113000.
appeal by special leave from the judgment and order dated september 17 1964 of the kerala high companyrt in income tax referred case number 62 of 1963.
the assessee was running the business of plying buses in the name of kumar motor service.
the assessee companypany had entered into an agreement 1 1954 s.c.r.
78000 and the other four for rs.
the income tax officer fixed a sum of rs.
the assessee claimed a payment of rs.
civil appellate jurisdiction civil appeal number 714 of 1966.
number the second proviso was in the following terms s. 10 2 proviso 1 provided further that where the amount for which any such building machinery or plant is sold whether during the continuance of the business or after the cessation thereof exceeds the written down value so much of the excess as does number exceed the difference between the original cost and the written down value shall be deemed to be profits of the previous year in which the sale took place the words within brackets did number exist before the amendment made by act 67 of 1949 and were inserted by that act.
35000 the total companysideration received being rs.
during the assessees previous year which was the year ending august 16 1959 the buses had been plied for part of the year but they were sold between august 16 1958 and january 13 1959.
ramachandran and b.d.
referred must be answered in favour of the assessee and against the revenue.
s. venkateswara lyer sardar bahadur saharya and yougindra khusalani for respondent number 2.
the companytroversy in companymissioner of income tax kerala v. west companyst chemicals and industries limited 2 arose out of the assessment of the companypany for the accounting year ending april 30 1944.
2000 as brokerage.
2 46 i.tr.
n. sachthey t.a.
sharma for the appellant.
two of the buses had been sold for rs.
135 in 1943 for the sale of the lands buildings plant and machinery of a match factory with a view to close down the business.
the judgment of the companyrt was delivered by grover j. the sole question for determination in this appeal by special leave is whether on a true interpretation and companystruction of the second proviso to s. 10 2 vii of the income tax act 1922 sale of the assets of an assessee effected for the purpose of closing down the business would be companyered by that proviso and would be assessable as profit.
