DEEPAK ANUBHAI SHAH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference made under section 256(1) of the Income -tax Act, 1961, the Income -tax Appellate Tribunal, Ahmedabad, has referred the following two questions to this court :

(2.) BRIEFLY stated, the facts giving rise to this reference as that the father of the assessee threw land which belonged to him and which is situated at Amraiwadi in his Hindu undivided family consisting of himself and his three sons. This happened on March 25, 1970. Thereafter, on October 27, 1970, the Hindu undivided family partitioned the properties and as result thereof the assessee received his share in the said land. The land was then acquired by the Government for the Gujarat Housing Board and the assessee received compensation of Rs. 31,905 for his share in the land.

(3.) THE assessee, therefore, appealed to the Appellant Assistant Commissioner. He held that the assessee's case was covered by the provision of section 55(3) of the Act and the cost to him will have to be taken at the fair market value available on March 25, 1970. The Appellant Assistant Commissioner, therefore, allowed the appeal and directed the Income -tax Officer to adopt that basis and compute the amount of capital gains accordingly.