P.K. Kesavan Nair vs Commissioner of Income Tax

K.S. Paripoornan, J.—The petitioner is an assessee to Income Tax. The matter arises in connection with availing of the benefit u/s 54B of the Income Tax Act. The assessee sold his agricultural properties. He acquired new properties thereafter, with the aid of consideration received for his properties. The question is whether this acquisition was done within the time allowed by law. It is common ground that the sale deed was dated March 25, 1975, and it was registered on March 29, 1975. The petitioner/assessee had a further plea that as per the agreement of sale (annexure A) dated November 21, 1974, title passed as per the deed only on March 31, 1975. That is the intention of the parties. The amount that was received on the date of registration, i.e., March 29, 1975, is only a conditional payment. It is common ground that if the date of sale is only March 31, 1975, the assessee can avail of the benefit of section 54B of the Income Tax Act. But, after adverting to the relevant documents and other circumstances, the Appellate Tribunal held that the transfer took place on March 29, 1975 and that the claim of the assessee should be worked out on that basis. The assessee filed a petition u/s 256(1) of the Income Tax Act, to refer a question of law, which according to him, arose out of the appellate order of the Tribunal. It was dismissed, by order dated January 30, 1985 Thereafter, this original petition was filed in this court praying that the Appellate Tribunal may be directed to refer the question of law, formulated in para 11 of the original petition. The question of law is as follows:

Whether the Tribunal was justified in law in holding that the date of execution of the deed of sale is March 29, 1975 and not March 31, 1975 ?"

We heard counsel for the petitioner, Mr. P. Balachandran, as also counsel for the Revenue, Mr. Menon. The date of execution of the sale deed is ordinarily a question of fact. The Appellate Tribunal adverted to the entire evidence in the case, inclusive of the sale deed, the date of registration the method of payment, etc., and came to the conclusion that the facts clearly established that the sale was in fact effected on March 29, 1975. The Appellate Tribunal also relied upon the grounds of appeal filed by the assessee himself to arrive at the conclusion that the transfer was effected on March 29, 1975. It was not contended that the finding of the Appellate Tribunal that the date of execution of the sale deed is March 29, 1975 is not based on any evidence or that the said finding is based on irrelevant and immaterial factors or that relevant and material factors were not taken into account.

We are of the view that the registration of the deed having taken place on March 29, 1975, the transfer was complete. The Appellate Tribunal was justified in holding that the date of execution of the sale deed is March 29, 1975. No referable question of law, as formulated in para 11 of the original petition arises for consideration. We decline to direct the Appellate Tribunal to refer the question of law formulated in para 11 of the original petition.

The original petition is without merit. It is dismissed.