1987 (11) TMI 134

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....The assessee for the purpose of dealing in the landed property was required under the rules of Urban Improvement Trust, Udaipur, to develop the plots of land for which purpose charges need to be deposited with the U.I.T. In accordance with the rules, a demand of Rs. 60,000 was raised on the assessee and Rs. 30,000 was paid on this account in the two assessment years in question. As per the rules t....

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....s income on which tax was paid in that assessment year. The claim of the assessee was that the amount of Rs. 60,000 spread over in two years was the estimated expenses by the U.I.T. which according to them was necessary for the purpose of development of the plots of land. It was, therefore, clearly a liability that was fastened on the assessee in the two assessment years itself and in view of the ....

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....the demand that was raised by the U.I.T. The leading case of the Supreme Court in Calcutta Company Ltd. vs. CIT (1959) 37 ITR 1 (SC) clearly lays down the principle in regard to persons who are dealers in landed property. The observations of their Lordships of the Supreme Court are that such dealers are bound to carry out the development of the plots of land without which they would not be entitle....