LAWS(KER)-1972-7-29

INCOME TAX OFFICER Vs. VARGHESE K P

Decided On July 05, 1972
INCOME-TAX OFFICER, B-WARD Appellant
V/S
K.P. VARGHESE Respondents

JUDGEMENT

(1.) I have perused the judgment prepared by Gopalan Nambiyar J., and agreed to by Viswanatha Iyer J., but I regret that I am not able to agree with the main reasoning of my learned brother and the conclusion in the case.

(2.) THE facts which lie in a narrow compass are not disputed; and they are stated in the judgment of Nambiyar J. I do not, therefore, recapitulate them.

(3.) SECTION 45 provides that " any profits or gains arising from the transfer of a capital asset effected in the previous year shall, .... be chargeable to income-tax under the head 'capital gains' and shall be deemed to be the income of the previous year in which the transfer took place." SECTION 48, which provides for the mode of computation of the tax and deductions, lays down that the income chargeable under the head " Capital gains " shall be computed by deducting from " the full value of the consideration received or accruing as a result of the transfer of the capital asset" the following amounts. (Then the amounts to be deducted are mentioned). SECTION 52 of the Act, on which considerable arguments have been advanced by both sides, has to be noted. The section reads :