TMI Blog1972 (12) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... HEDGE J.-- This is an appeal by special leave. It arises from a decision of the Bombay High Court under section 66(2) of the Indian Income-tax Act, 1922 (in short "the Act"), declining to call upon the Tribunal to submit the question of law mentioned in the application. The material facts of this case are as follows: The respondents purchased three plots of land measuring 1,62,825 sq. yds. from the Archbishop of Bombay. These three plots were situated in different localities. The purchase price for all these three plots together was Rs. 10 lakhs. The sale deed does not mention separately the price of each plot. The purchase in question was made on December 21, 1960. Before the purchase was made the assessee paid an earnest money of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at different places and their quality differed. It also noted the fact that a large area of land was in the possession of the tenants and they could be evicted only at considerable cost. It further opined on the basis of the material before it that the assessee may not be able to take possession of some of the lands. Lastly, it noticed that the assessee had to spend considerable amounts on litigation to obtain possession of some of the lands purchased by him. All these aspects had been ignored both by the Income-tax Officer as well as the Appellate Assistant Commissioner. The Tribunal did not go into the question as to what could be said to be the correct purchase price of the lands sold. It opined that in a venture like the one before us, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion similar to the one before us came up for consideration and this court came to the conclusion that the profits earned in any year should be separately computed and assessed in the relevant assessment year. This court took the view that in a venture somewhat similar to the one before us, the profits are not to be computed when the entire land purchased is sold. It was further urged that, if the law is as stated by the Bombay High Court in Mody's case it would be extremely easy for an assessee to evade payment of tax. All that he needs to do is not to sell a small portion of the land purchased by him. It was not denied on behalf of the department that the method of averaging adopted by the Income-tax Officer for the purpose of finding t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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