TMI Blog1989 (9) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... referred the following two questions of law for the decision of this court : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in deleting the addition of rubber replanting subsidy ? (2) Whether, on the facts and in the circumstances of the case, income-tax for capital gains is exigible on the trees comprised in the rubber estate sold?" The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Revenue appealed before the Appellate Tribunal. The said appeal was dismissed holding that the rubber replantation subsidy did not constitute income liable to be taxed in the assessee's hands and that, in the case of the sale of an estate with trees, no question of assessment of capital gains on the sale of trees will arise. It is, thereafter, at the instance of the Revenue that the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rees form an integral part. In such cases, it is not permissible to bifurcate the value of the trees and hold that capital gains arise on the sale of the trees. In the light of the above Bench decision, we hold that the Appellate Tribunal was justified in holding that no capital gains arises on the sale of rubber estate with yielding rubber trees. We answer question No. 2 in the negative, against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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