Commissioner of Income Tax vs Sudha Transports

Ratnam, J.—In this tax case reference u/s 256(1) of the Income Tax Act, 1961, at the instance of the Revenue, the following question of law

has been referred to this court for its opinion :

Whether, on the facts and in the circumstances of the case, section 52(1) of the Income Tax Act, 1961, can be invoked to determine the capital

gains that arose from the sale of the two buses by the assessee for the assessment year 1973-74 ?

We find that the Appellate Assistant Commissioner, in the course of his order, has stated that there is no evidence made available by the

Revenue to establish that a higher value had been received by the assessee in respect of the sale of the buses. The conclusion has not been

disturbed by the Tribunal. Under those circumstances, in view of the decision reported in Commissioner of Income Tax, Madras Vs. Shivakami

Co. Pvt. Ltd., , applying the principle laid down in K.P. Varghese Vs. Income Tax Officer, Ernakulam and Another, to cases arising u/s 52(1) of

the Income Tax Act, 1961, the question has to be answered in the negative and against the Revenue. There will no order as to costs.