1994 (7) TMI 55

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....section 256(2) of the Income-tax Act, 1961, at the instance of the Revenue. The relevant assessment year is 1983-84. The assessee, at the material time, derived income from plying buses in the name of Prakash Bus Service. During the previous year relevant to the assessment year in question, the assessee sold his bus for a consideration of Rs. 1,10,000. The bus had been purchased by the assessee on....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....value; (ii) the amount of Rs. 70,000 was the route value ? (iii) the addition of Rs. 70,000 in respect of capital gains is to be deleted ?" The Tribunal has referred to the agreement between the assessee and the purchaser, the relevant portion of which is set out in the assessment order of the Income-tax Officer. The agreement recites as follows: " Whereas the first party is the registered own....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome to the conclusion that the price includes not merely the price of the bus, but also the price for the pucca stage carriage permit for the route Chandayad-Tellicherry. The Tribunal has, therefore, allocated a portion of the price as being the amount paid for the purchase of the route in question. The Tribunal has further held that since the bus was sold by the purchaser as scrap within six mont....