2014 (8) TMI 594

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nce has been made by the Tribunal to this Court seeking an answer or opinion on the following question:- "Whether the Tribunal was right in holding that receipt of Rs. 35 lakhs by the assessee in pursuance of the Consent Decree of the Hon'ble Bombay High Court was liable to tax as business income in view of the finding of the Tribunal that the transaction of purchase of land was in the nature....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... purchase of a plot of land in village Dahisar, District Bombay, for a declared consideration of Rs. 3,54,576/- and a sum of Rs. 25,000/- was paid as earnest money. The possession of the land in question was, however, not made over to the assessee. The seller/ vendor entered into another agreement with a third party on 21st December, 1979 to develop the plot. When the Assessee became aware of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tal gains tax. However, the amount was not included in the total income in view of the investments made in the prescribed securities. The argument was that the agricultural land was agreed to be purchased and that is how the deal was struck, however, on payment of earnest money possession was never handed over. Thus, it is a capital investment in the property and the amount of Rs. 35,00,000/- rece....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Tribunal in the main Appeal, copy of which is annexed and forms part of record of this reference, that pure findings of fact were rendered and in relation to the claim of the Assessee. The legal tests that were referred to in the main order are fairly well settled and as to how this income can be treated. We do not see how the question posed for our opinion can be termed as a question of law.....