Balbir Singh (Huf), Chandigarh vs Assessee on 29 October, 2013
22. The next case relied on is Raja J. Ramesh Rao Vs C IT (supra). In that
case the assessee was a Jagirdar and was having income from Jagir and other
sources. He acquired a village known as "Makhta" for Rs. 25,000/-. He also
purchased 217 acres of land from Pattadars and a sum of Rs. 19,816/- was paid
out of the total consideration of Rs. 25,502/-. The assessee also constructed a
portion of land and acquired ganj and shops. The rest of land was laid out in
plots. In this case it was ultimatel y held by the Hon'ble Apex Court that
assessee has carried on the business. Clearl y, in this case the assessee had made
construction and has also divided the land into plots and that is why it was held
to be business income. As observed earlier, in the case before us, the assessee
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has not done any development work, therefore, this case can also not be applied
to the facts of the assessee's case.