MOHINDER JASPAL SINGH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Income Tax Tribunal has referred the following two questions to this Court :

(2.) In respect to the assessment years 1974-75 and 1975-76, the assessee did not return any capital gain in respect of the property known as "Narinder place", Parliament Street, New Delhi which had been sold by her. According to her there was no capital gain involved but the Income Tax Officer did not accept her contention and levied capital gain tax. Appeals were filed before the Commissioner of Income Tax (Appeals). Subsequently relief was granted because the CIT (Appeals) agreed with the assessee that the provisions of Section 52(2) of the Act could not be invoked, as had been done by the Income Tax Officer. Nevertheless the Commissioner of Income Tax (Appeals) did not accept the valuation of the property as on 1.1.54 as put by the assessee.

(3.) Second appeals were filed to the Tribunal and it was, inter alia urged that the proceedings for the years in question under Section 144B of the Act were illegal and void inasmuch as Section 144B of the Act was substantive law and did not apply as the same was not procedural. The argument was that the said provision came into effect from 1.1.76 and, therefore, was not applicable to earlier assessment years. It was also contended that the period of limitation for completing the assessment was two years under the provisions of Section 153(1) (a) (iii) and, therefore, the assessment was time barred.