1983 (4) TMI 28

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..... Bench, Allahabad, has referred the following question of law for the opinion of this court under s. 27(2) of the W.T. Act, 1957. " Whether, on the facts and in the circumstances of the case, the ITAT is correct in allowing as a liability to Nagar Mahapalika of paying 75% of difference between the purchase and sale price of the impugned plots which did not arise during the year under consideratio .....

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..... s upheld by the AAC but the Income-tax Appellate Tribunal, before which the matter went in a second appeal, took the view that on account of the covenant aforesaid, the real wealth in the hands of the assessee in respect of the plot in question could only be worked out after deducting the amount of 75% of the notional profit if the land was to be sold on 31st March, 1972. It followed the view of a .....

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..... sale. The Supreme Court negatived the plea raised on behalf of the Department that, in the absence of an actual sale, the right to share the profit was, at best, a contingent right. In the present case, the covenant, that is, the term that the Mahapalika was entitled to a share of 75% in the profit if the plot of land was sold, is in the nature of a restriction upon the right of the assessee in .....

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