| Case ID |
32105f04-ae95-48d7-9c3a-697bdba2e3ad |
| Body |
View case body. Login to View |
| Case Number |
I.T.A. No. 905/ KB of 1983-84 |
| Decision Date |
Sep 13, 1987 |
| Hearing Date |
Sep 08, 1987 |
| Decision |
The Income Tax Appellate Tribunal upheld the assessment of the appellant's income of Rs. 3,40,000 derived from the sale of a plot of land, determining that the transaction constituted an adventure in the nature of trade rather than a capital gain. The tribunal emphasized that the intention behind the purchase and subsequent sale was to earn profit, thus exposing the gains to income tax. It was concluded that the absence of a registered sale-deed did not exempt the appellant from tax obligations, reiterating the legal principle that ownership rights remain until a formal transfer occurs. The appeal was dismissed, confirming the taxability of the amount. |
| Summary |
The case revolves around the tax implications of a land sale by the appellant, who claimed the proceeds as capital gains exempt from income tax. The Income Tax Appellate Tribunal examined the transaction, concluding it was an adventure in the nature of trade due to the appellant's intention to profit from the sale. The ruling reinforced that tax avoidance is permissible, but tax evasion is not. The tribunal's decision highlighted the importance of documented ownership transfer and the legal definitions of sale and licence under the Transfer of Property Act. The case references several precedents, illustrating the nuanced interpretations of tax law regarding real estate transactions. Key terms include 'taxability,' 'capital gains,' 'adventure in the nature of trade,' and 'Transfer of Property Act.' |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
Not available
|
| Judges |
Farhat Ali Khan (Chairman),
Manzoor-ul-Haq (Member)
|
| Lawyers |
Mehmood A. Hashmey,
Mohammad Farid
|
| Petitioners |
Mehmood A. Hashmey
|
| Respondents |
Mohammad Farid
|
| Citations |
1987 SLD 106,
1987 PTD 720,
(1988) 57 TAX 28
|
| Other Citations |
(1966) 60 ITR 566,
(1963) 47 ITR 336,
(1963) 48 ITR 162,
1967 P T D 170,
1982 P T D 241,
(1982) 137 ITR 195,
(1953) 24 ITR 33
|
| Laws Involved |
Income Tax Act, 1922,
Transfer of Property Act (IV of 1882)
|
| Sections |
54,
105
|