Judgment

KANIA, J. :- This is an appeal against the judgment of a Division Bench of the High Court of Madhya Pradesh on a reference made to the High Court under S. 66(l) of the Indian Income-tax Act, 1922 (referred to hereinafter as "the said Act"). The appeal has been preferred on a certificate of fitness granted by the High Court under S. 66A(2) of the said Act and read with Art. 133(l) of the Constitution of India.

2. The releavant facts are as follows :-

The assessee is a Hindu Undivided Family represented by its Karta one R.K. Palshikar. The years of assessment with which we are concerned are the assessment years 1959-60 to 1961-62. The assessee is the owner of what is known at present as Palshikar Colony at Indore. This colony covers an area of 36.62 acres. The said land originally belonged to an ancestor of the present Karta as agricultural land. The land was in the possession of the tenants and crops like wheat, gram and so on were grown on the said land by the tenants. The present Karta wished to develop the land into a housing colony and took steps to evict the tenants. For this purpose he filed a suit in the High Court and on Sept. 24, 1957 that suit was decreed. The assess