Commissioner of Income - tax vs Messrs. Raunaq Singh Swaran Singh

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1971 Supreme(Online)(Del) 8

DELHI HIGH COURT
A.K. Sikri, J
Commissioner of Income - tax – Appellant
Versus
Messrs. Raunaq Singh Swaran Singh – Respondent

Table of Content
1. factual background on taxpayer's property holdings and sales. (Para 1 , 2)
2. arguments regarding taxpayer's intention during transactions and financial arrangements. (Para 3 , 9 , 10 , 11)
3. existence of relevant facts and findings must be recognized in legal context. (Para 4 , 5 , 6 , 8)
4. conclusion that transactions do not represent business profits under taxation law. (Para 7 , 16)
5. distinctions made between similar case law and current case facts. (Para 12 , 13 , 14 , 15)

1. This reference under S.256(1) of the Income - tax Act, 1961, hereafter referred to as "the Act", has been made by the Income - tax Tribunal, Delhi Bench "A", at the instance of the Commissioner of Income - tax and relates to the assessment proceedings against Messrs. Raunaq Singh Swaran Singh, a Hindu undivided family, hereafter referred to as "the assessee", relating to the assessment year 1962-63. The previous year of the assessee ended on August 31, 1961.

2. Facts leading to the reference, stated briefly, are that the assessee - family owned a building at Uttariya Marg, New Delhi, and resided in part of it while its remaining portion was in the occupation of tenants. On January 9, 1959