1959 (6) TMI 26

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.... Shah, J. On the 18th of September, 1946, the assessee entered into an agreement with one Kesarbai and others to purchase a piece of land together with a house sanding thereon, at Walkeshwar Road, Bombay, for Rs. 4 lakhs. Under the agreement of sale, the transaction was to be completed by the purchaser within 3 months. After having entered into the agreement, the assessee was unwilling to co....

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....ess. In the alternative, he claimed that it was a capital loss and the same was liable to be set off under section 24 against capital gains under section 12B of the Income-tax Act. The Income-tax Officer rejected the contention of the assessee, holding that the agreement to purchase the house was not in the course of a business conducted by the assessee and that the amount of consideration paid by....

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.... of the agreement to purchase the property and that such a loss was not covered by section 12B of the Income-tax Act. At the instance of the assessee, the Tribunal has referred the following question: "Whether on the facts and in the circumstances of the case, the loss of Rs. 76,598 is a loss falling under the head 'capital gains' within the meaning of section 24(2A) of the Inc....

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....hether the benefit of an agreement to purchase immoveable property may be regarded as "property" within the meaning of section 2(4A) read with section 12B of the Indian Income-tax Act. In the present case, in substance the transaction between the vendors, the assessee and the ultimate purchasers appears to have assumed the form under which the property was conveyed to the ultimate purchasers and t....