1939 (10) TMI 6

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....question which the Commissioner has raised goes a good deal beyond that, but this is the substantial question raised and the only question which we are prepared to answer on the materials put before us. The material facts are that in the year 1930 the assessee purchased the Inam village of Sahijpur Bogha which is about 3? miles from Ahmedabad at a price of approximately Rs. 60,000. He borrowed the whole of that amount at 7? per cent. interest. The village comprised 1,330 acres and out of that area he proceeded to set aside for development and sale as building sites an area of 266 acres divided into 1,000 plots. The finding of fact is that he has incurred some expense on the development of that property. Out of 266 acres which he proposes....

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....f fact can be justified. It is difficult to suppose that the assessee borrowed money at 7? per cent. interest if he was merely desiring to purchase this Inam village as an investment. However it is not for us to consider whether any finding of fact by the Commissioner is right. We must accept it provided there is any evidence to support it and so far as the Commissioner's finding deals with the question of fact whether the assessee was carrying on business we think that there is evidence to support it. But the actual question referred to us by the Commissioner is "whether there is any evidence to support the finding of the Assistant Commissioner that the said amount of Rs. 47,533 is profit earned by the assessee in the business of purch....

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....urchase of the Shahijpur Bogha village, or any part thereof, is profit earned by the assessee in the business of purchasing, developing and selling land carried on by him". And we answer that question in the affirmative. Beyond that we are not prepared to go. KANIA, J.-The question referred by the Commissioner divides itself in two parts. The first is whether there is any evidence to support the finding of the Assistant Commissioner that the amount of Rs. 47,533 is profit earned by the assessee. The second is whether there is any evidence to support the finding of the Assistant Commissioner that the assessee is carrying on business of purchasing, developing and selling land. Taking the second question first the Court is not asked a....