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Issues involved:
The judgment deals with the taxation of the amount received from the sale of route permits as capital gains for the assessment year 1967-68 under the provisions of the Income-tax Act, 1961. Details of the Judgment: *Issue 1: Nature of Route Permits as Property* The assessee contended that the route permit is not property and thus not subject to tax as capital gains. However, the court held that route permits have value, are considered property, and can be transferred for consideration or gifts. The court cited previous decisions supporting the view that route permits are indeed property and can be transferred. The sale deed in this case specifically mentioned the sale of route permits, further confirming their status as property. *Issue 2: Cost of Acquisition of Route Permits* The Tribunal rejected the assessee's argument that since there was no cost of acquisition for the permits, the amount realized from their sale should not be taxed as capital gains. The Tribunal reasoned that even if the cost incurred in securing the permits was negligible, some cost must have been involved in acquiring the property. The court referred to a previous judgment stating that without any cost of acquisition, the amount realized cannot be taxed as capital gains. However, the Tribunal failed to determine the actual cost of acquisition in this case. The court directed the Tribunal to investigate whether there was any cost of acquisition and, if so, to determine the amount spent on acquiring the permits before deciding on the tax liability. In conclusion, the court returned the unanswered question to the Tribunal, instructing them to reexamine the issue of cost of acquisition and determine whether the amount received from the sale of route permits should be taxed as capital gains.
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