S. RANGANATHAN, J. (ORAL)

( 1 ) THIS reference under the Income-tax Act, 1961 arises out of the assessment of Mjs. Mercury General Corporation Pvt. Ltd. for the assessment year 1969-70 in respect of the previous year which ended on 30th June, 1968. The question referred to this court reads as under:

"whether on the facts and in the circumstances of the case, the Tribunal was not in error in holding I hat as a matter of law there was no relinquishment or extinguishment of the right In the property by the assessee and whether the Tribunal was right in deleting the capital gain assessed by the Income-tax Officer of Rs. 1,26,82,136 ?"

( 2 ) THE assessee company was the owner of a big property known as pili Building situated at Arya Samaj Road, New Delhi. The building consists of 12 units bearing municipal Nos. 411 to 422. It appears that this comprises of 50 shops, 10 offices and about 160 rooms. They are all in possession of various tenants. The property had been purchased by the assessee company on 21-1-1963 for Rs. 4,25,000 from Arya Dharam Seva Sangh, New Delhi.

( 3 ) ON 31-5-1967 and 9-6-1967 the assessee company entered into agreements of sale with certain parties. who were shareh

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