9911796707
TMI Blog1996 (3) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and in the circumstances of the case and the material on record, there is justification in law to hold that on sale worth Rs. 60,857 relating to food grain received on partition by the applicant, it constituted an adventure in the nature of trade and was taxable under the Income-tax Act, 1961, on a profit of Rs. 38,280 ? (2) Whether, on the evidence on record, the Income-tax Appellate Tribunal was correct in law in holding that the aforesaid transaction constituted an adventure in the nature of trade ? " The assessee was assessed in the status of an individual for the assessment year 1968-69, the previous year ending Diwali of 1967. The assessee sold grain weighing 490.5 mani for Rs. 60,857. According to the assessee, the grai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... questions of law, arising out of the order of the Tribunal but the application was dismissed. The assessee, therefore, filed an application under section 256(2) of the Income-tax Act, before this court and in pursuance of the order dated February 20, 1990, passed by this court, the said questions have been referred. We have heard learned counsel for the parties and perused the record. Learned counsel for the assessee placing reliance on the decisions of the Supreme Court in Raja Bahadur Kamakhya Narain Singh v. CIT [1970] 77 ITR 253 and in Khan Bahadur Ahmed Alladin and Sons v. CIT [1968] 68 ITR 573, has contended that the sale of the grain received in the partition of the Hindu undivided family in relation to agricultural produce could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the purchase of the site and the building of the factory was an adventure in the nature of trade. In Bhagirath Prasad Bilgaiya v. CIT [1983] 139 ITR 916, this court has observed : " That the dominant purpose of the assessee at the time of purchase of the lands from the family was to resell at a profit and not to utilise it for any other purpose. It was not a case where the intention to sell was inspired by the fortuitous circumstance of an unforeseen rise in price, but the lands were purchased with the calculation that they will bring profit immediately. There were continuous transactions of sales of lands. The buying and selling activity in the lands was characterised by a multiplicity of transactions, a prior association of busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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