TMI Blog1959 (4) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... r the written down value thereof could in law be termed to be income, profits and gains of the petitioner ? " We accordingly allow the appeal and send down the question as reframed to the High Court for doing the needful in the matter in the exercise of its jurisdiction under section 66(2) of the Indian Income-tax Act - - - - - Dated:- 14-4-1959 - Judge(s) : M. HIDAYATULLAH., N. H. BHAGWATI., S. R. DAS JUDGMENT The judgment of the court was delivered by BHAGWATI, J.--- This appeal with special leave under article 136 of the Constitution is directed against the refusal by the High Court of Patna to require the Income-tax Appellate Tribunal to state a case and refer to it the question of law namely : " Whether under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the said transfer certain valuation was put on these assets. The written down value of the building as on the 30th September, 1948, was Rs. 29,669, the original cost thereof including the cost of subsequent additions being Rs. 49,270. The written down value of the machines and the plants as on the 30th September, 1948, was Rs. 1,19,368 as against the original cost thereof including subsequent additions which came to Rs. 2,30,552. There was thus a difference of Rs. 1,30,785 which represented the total amount of depreciation which had been allowed by the Income-tax authorities on these assets up to that date. When the valuation was put on these assets for the purpose of the transfer, the valuation of the building with subsequent additions s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal to state a case and refer the said question amongst others for its decision. The High Court as stated above declined to do so, and hence this appeal. Mr. Kolah appearing on behalf of the appellant has urged before us that the question whether the sum of Rs. 1,30,785 being the excess of the sale proceeds of the building, plant and machinery amounted to or could be deemed to be income, profits or gains of the appellant was a question of law and the High Court should have directed the Income-tax Appellate Tribunal to state a case and refer the said question to it for its decision. Reliance was placed by him on Doughty v. Commissioner of Taxes, Commissioner of Income-tax v. Sir Homi Mehta's Executors, and Kikabhai Premchand v. Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... state a case and refer the said question to it for its decision. The question as it has been framed is not aptly worded and we therefore reframe it as under : " Whether under the facts and circumstances of the case the amount of Rs. 1,30,785 being the excess of sale proceeds of the building, plant and machinery over the written down value thereof could in law be termed to be income, profits and gains of the petitioner ? " We accordingly allow the appeal and send down the question as reframed to the High Court for doing the needful in the matter in the exercise of its jurisdiction under section 66(2) of the Indian Income-tax Act. The costs of the appellant will be costs in the reference before the High Court. The respondent will bear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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