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1 - 10 of 10 (0.55 seconds)Section 2 in Income Tax Rules, 1962 [Entire Act]
Section 66 in Income Tax Rules, 1962 [Entire Act]
Section 66 in The Income Tax Act, 1961 [Entire Act]
The Income Tax Act, 1961
Section 12 in Income Tax Rules, 1962 [Entire Act]
Commissioner Of Income Tax, Bangalore ... vs B. C. Srinivasa Setty, Etc. Etc on 19 February, 1981
In support of
this contention Mr. Desai cited some judgments including the
decision of this Court in C.I.T. v. Srinivasa & Setty,
[1981] 128 ITR 294 which was a case pertaining to goodwill.
It was, on the other hand, submitted by Mr. Manchanda, that
it was not open to Mr. Desai to raise this contention at all
as it did not arise out of the decision of
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the Tribunal and was not reflected in the questions referred
by the Tribunal, and particularly in the question in respect
of which certificate of appeal has been granted. In our
view, the submission of Mr. Manchanda must be upheld. The
question in respect of which certificate of fitness has been
granted, clearly relates to one controversy, namely, whether
the provisions of Section 12-B of the said Act can be
brought to play in this case as the transfer is of lease
hold interest in immovable property for 99 years and not an
outright sale of transfer of the complete interest of the
transferor in the immovable property. The question as to
whether Section 12-B can be brought into play where the
property sold has not cost anything to acquire as it was
gifted or was not urged before any of the Income-tax
authorities nor before the Tribunal or even before the High
Court. That question has not in any way been covered by the
decision of the Tribunal or the High Court.
Income Tax Rules, 1962
The Commissioner Of Income-Tax, Bombay vs The Scindia Steam Navigatlon Co. Ltd on 5 April, 1961
In Commissioner
of Income Tax, Bombay v. Scindia Steam Navigation Co. Ltd.,
[1961] 42 ITR p. 589 four prepositions have been laid down
by this Court in this connection and they are as follows:
Traders And Miners Ltd. vs Commissioner Of Income-Tax, Bihar And ... on 19 October, 1954
In Traders and Miners Ltd. v.
Commissioner of Income Tax, Bihar and Orissa, [1955] 27 ITR
p. 341 a case decided by a Division Bench of the Patna High
Court, the assessee let on lease for 99 years a portion of a
Zamindari acquired by it. The lease related to the surface
right together with nine mica mines located in that area.
The consideration for the lease was the payment of a
'salami' and a reserve rent per year. The Income-tax Officer
determined the cost to the assessee of the mineral rights
and after deducting this amount from the salami, he assessed
the balance to tax as capital gains under Section 12-B of
the said Act. It was held by the Patna High Court that the
gains arising from the said transaction were rightly taxed.
This decision has been cited without comment by Kanga and
Palkhivala in their commentary on the Law of Income-tax (7th
Edition) at page 550 and no contrary case has been cited in
the said text book or has been brought to our attention. It
is true that the decision of the Patna High Court relates to
a case of mining lease, but to our mind, the principle laid
down in that case can well be applied to the case before us.
In the first place, the lease is for a long period, namely,
99 years, hence it would appear held that under the leases
in question the assessee has parted with an asset of an
enduring nature, namely, the rights to possession
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and enjoyment to the properties leased for a period of 99
years subject to certain conditions on which the respective
leases could be terminated. A premium has been charged by
the assessee in all the leases. In these circumstances, we
fail to see how it could be said that the provisions of
Section 12-B of the said Act cannot be brought into play.
The grant of the leases in question, in our view, amounts to
a transfer of capital assets as contemplated under Section
12-B of the said Act.
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