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TMI Blog1994 (9) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... y 1, 1964, and determined capital gains on the basis of the price fetched by them. They were sold as unyielding rubber trees during the accounting periods in question. The Commissioner of Income-tax (Appeals), however, found that no capital gains accrue to the assessee on the facts and circumstances of the case. The Tribunal, on appeal by the Revenue, followed the decisions of this court, one of which was referred to, namely, Income-tax References Nos. 315 and 316 of 1985 (CIT v. Midland Rubber and Produce Co. Ltd. (1991] 188 ITR 333), holding that no capital gains can be assessed on the sale of old and unyielding rubber trees since the fair market value of those trees as on January 1, 1954, or on January 1, 1964, as the case may be, would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to compel reference of these questions of law. We find that the matter has been the subject of a number of decisions of this court and that this court has consistently taken the view that the value of yielding rubber trees as on January 1, 1954, or January 1, 1964, will be higher than the value of the same trees when sold as unyielding ones later, and, therefore, no capital gain accrues on the sale of the trees as old and unyielding ones. This is the view taken in CIT v. Alanickal Co. Ltd. [1986] 158 ITR 630 (Ker), Kanthimathy Plantations Pvt. Ltd. v. CIT [1990] 184 ITR 1 (Ker) and CIT v. Midland Rubber and Produce Co. Ltd. [1991] 188 ITR 333 (Ker). In the last of these cases, it has been mentioned that this court had occasion to examine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es which were yielding as on January 1, 1954. The assessing authority assessed the capital gains on the sale of these trees at the unyielding stage treating the trees as having a value of Rs. 14 as on January 1, 1954. One of the contentions raised in a subsequent year was that there was no capital gain liable to be assessed. In that context, this court observed that though the principles of res judicata would not apply to income-tax proceedings, when a question of law or fact was decided in the assessee's own case for an earlier assessment year, and the identical question came up for consideration for a later year, the Appellate Tribunal would be justified in placing reliance on the earlier decision to base its conclusion, in the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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