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TMI Blog1988 (9) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee during the previous year relevant to the assessment year 1970-71 ?" The assessee is Khanikar Tea Estate (P.) Ltd. On April 16, 1970, the assessee purchased a tea estate from Dekhari Tea Co. Ltd. a company incorporated in England with its registered office at 15, St. Helen's Place, Bishopsgate, London. The tea estate consisted of land of 1,858.85 acres of plantations, garden nursery, tea bushes, seedlings, standing tea crops, etc. The contract of sale was entered into on June 26, 1969, and under that contract, the assessee agreed to purchase the estate as a going concern from January 1, 1969. The sale price of Rs. 25,00,000 was to be paid in instalments of Rs. 10,00,000 as earnest money and a guarantee was offered to the vendor f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion has been referred to this court. It is, in this regard, apposite to refer to the Indian Registration Act and in particular to section 47 of the Registration Act which reads as under : "47. A registered document shall operate from the time from which it would have commenced to operate if no registration thereof had been required or made, and not from the time of its registration." In the context of the above provision, as of fact, it was held by the Revenue authorities that the sale became effective only from January 1, 1969. We are aware that, in certain circumstances, inferences from facts may gain the characteristic of a question of law but in this case, the assessee does not argue that the finding recorded by the Tribunal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nion did not cover the real controversy in issue, the High Court could reframe the question and decide the real controversy." Here, in the instant case, the controversy was whether the sale was effective from January 1, 1969, or whether it was effective from April 16, 1970. As a question of fact, the controversy was settled stating that it is effective from January 1, 1969. If it is accepted that the sale is effective only from January 1, 1969, the business from that date was carried on by the vendor as agent of the vendee-assessee. As a corollary of that fact, under section 32 of the Act, the assessee is entitled to depreciation. In the question referred, especially from the words "the income from Dekhari Tea Estate accrued to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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