COMMISSIONER OF INCOME TAX Vs. ASHWIN M PATEL

JUDGEMENT

(1.) THE Income -tax Appellate Tribunal (hereinafter referred to as 'the Tribunal'), has at the instance of the REvenue referred the following questions for our opinion u/s 256(1) of the I. T. Act, 1961 (hereinafter referred to as 'the ACt) :

(2.) FACTS leading to this references may be briefly stated as under. The assessee is a Hindu undivided family (hereinafter referred to as'HUF' for brevity' sake). Munubnhai B. Patel, who was the karta and one of the member of the members of the HUF, purchases equity shares,'A' preference share and ''B' preference shares of m/s. New Rajpur Mills Company Ltd. in his individual capacity. he threw these shares in the common hotchpot of the HUF on different dates which are not relevant for the purposes of this reference. The HUF itself had also purchased equity shares,'A' preference and 'B' preference shares of the said mills comapny. The HUF sold 2,431 equity shares, 145 'A' preference shares and 236 'B' preference shares of the said mill company on August 9, 1971 which fell within the previous year relevant to the assessment year 1972 -73 for a total consideration of Rs. 2,92,459. Out of the shares sold by the HUF 2,285 equity shares, 85'A' preference shares and the 236 'B' preference shares were those which were originally owned by Manubhai B. Patel and which were thrown by him in the family hotchpot as stated above.

(3.) IN the appeal preferred by the HUF, the AC, however, m upheld its contention and held that the cost of acquisition of the above shares high the shares were thrown into the common hotchpot of the HUF. The view taken by the AAc was confirmed by the Tribunal in the appeal preferred by the REvenue and, therefore, at the instance of the Revenue, the questions set out above, are refereed to us for our opinion.