2014 (8) TMI 594

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....eer Singh ORDER P. C. This Reference 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 trans....

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....h Mrs. Jayaben D. Kenia on 12th January 1979 for 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 ....

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....5,00,000/- amounted to income chargeable to capital 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....

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....om a reading of this order and the order passed by 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 f....