COMMISSIONER OF INCOME TAX Vs. INDIA SEA FOODS

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Cochin Bench has referred the following questions for the opinion of this Court under S.256(1) of the Income Tax Act, 1961:

(2.) The assessee is a registered firm. The assessee owned a generator which was acquired on October 25, 1970. This generator was sold for an amount of Rs. 6,00,000/- to one M/s. Janakiram Mills Ltd. There was controversy in the first instance as to the date of sale. According to the assessee the sale was on November, 28, 1972, whereas according to the Revenue it was in March, 1973. Whatever that be, it was agreed before the Tribunal that the sale took place on March 3, 1973, which was the finding arrived at by the Income Tax Officer in the order of assessment.

(3.) An amount of Rs. 5,15,440/- was computed as the capital gain arising out of the sale of the generator. In the return which the assessee filed for purposes of the prior assessment year 1973-74, this amount was included as "capital gains".