Delhi High Court
Commissioner Of Income-Tax vs Lala Dewan Chand Trust on 5 November, 1990
Equivalent citations: [1991]190ITR451(DELHI)
Author: B.N. Kirpal
Bench: B.N. Kirpal
JUDGMENT
1. The petitioner seeks reference of the following question of law to this court :
"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that construction of flats on 30, Ferozeshah Road, and selling them on profit is not a business activity but is a conversion of a capital asset from one form to another ?"
2. The respondent is a public charitable trust. It had a building at 30, Ferozeshah Road, New Delhi, which was demolished and a multi-storeyed building was constructed. A part of the building so constructed was sold. The Tribunal was found as a fact that, as a result of this transaction, the trust has got modern premises in place of the old and there was no profit motive involved. The Tribunal has observed that it was a case of conversion of an old building into a modern building. We informed that the surplus which is available with the trust is used for public charitable purposes. In order to have a modern building, it was necessary that part of the multi-storeyed building had to be sold because, without selling it, the necessary funds for constructing the building would not have been available. The conclusion arrived at by the Tribunal is a finding of fact and no question of law arises.
3. Dismissed
4. Petition dismissed.