1984 (3) TMI 61

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..... pellate Tribunal, Bangalore Bench, has referred the following question for the opinion of this court under s. 256(1) of the I.T. Act, 1961 (" the Act ") : " Whether, on the facts and in the circumstances of the case, the Tribunal was correct in upholding the assessment of capital gains on sale of rosewood trees ? " The assessee is a HUF. The assessment for the assessment year 1973-74 was reopene .....

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..... od trees and that the sale was on capital account and the income therefrom would attract capital gains tax. The only difference so far as this year is concerned is that the assessee did not sell the trees as such. The trees, after felling, were dressed and sold. The question is whether this mode of sale would make any difference as to the income therefrom. We do not think that it would make any d .....

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..... consider similar sales of timber in a matter arising under the Sales Tax Act in STRP Nos. 86 to 89/1978 and 99 to 103/1979-State of Karnataka v. Consolidated Coffee Ltd. (disposed of on 22-11-1983) [1984] 55 STC 363, 367 (Kar), wherein we have held: " . ...... that the mere fact of sizing of the timber cut from the trees in order to facilitate easy transport would not make it a commercial articl .....

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