TMI Blog2001 (7) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. The assessee is a property developer dealing in construction and sale of flats, commercial complexes, etc. The assessee had undertaken construction of multi-storeyed buildings during the assessment years 1986-87 and 1987-88. The profit was ascertained on finalisation of construction and allotment of several portions and the entire profit was disclosed in the return of income for the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eved by the above order of the learned Appellate Tribunal, the Revenue filed a reference application under section 256(1) of the Income-tax Act, 1961 (for short, "the Act"), to refer the following question of law for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is correct in holding that the income from construction an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of construction of multi-storeyed buildings and sale of flats therein. The assessee-firm treated the constructed unsold area as stock-in-trade and not as capital asset. The assessee-firm sold and delivered possession of the flats to the respective buyers against payment of full consideration in terms of the agreement of sale entered into by it in the course of the business. The Income-tax Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as duly handed over to the respective buyers against payment of full consideration on the ground that no deeds of conveyance have been registered in respect of these units in favour of the buyers. The learned Tribunal, in the fact-situation of that case, held that there cannot be a valid transfer of ownership of immovable property of the value of more than Rs.100 by mere delivery of possession and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se also. In the instant case, admittedly, the assessee is not a contractor of a building but constructs flats, commercial complexes, etc., and sells them. The learned Tribunal has not committed any error, factual or legal, in applying the ratio of the judgment of the Calcutta High Court in Madgul Udyog's case [1990] 184 ITR 484. This case does not involve any referable question of law to this cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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