O THOMAS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Tribunal has referred the following two questions of law, for the decision of this Court:

(2.) THE respondent herein is the Revenue. The original assessee died, pending the reference. His legal heirs have been impleaded as Applicant Nos. 1 and 2, as per orders passed by this Court in CMP No. 4095 of 1991.

(3.) IN the return submitted for the asst. yr. 1972-73, the assessee did not disclose any capital gains arising from the sale of the above property. The original assessment was on 21st Dec., 1974. The assessment was reopened under S. 147(b) of the IT Act, 1961 ('the Act'). The assessee filed the return. The ITO took the view that the fair market value of the property, on the date of sale, was Rs. 84,600. He invoked S. 52(1) of the Act and computed the capital gains for the sale of the property at Rs. 39,800, taking the market value of the property as on 1st Jan., 1954 as Rs. 14,800.