D PADMANABHAN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this petition filed under section 256(2) of the INcome-tax Act, 1961, the assessee seeks a direction from this court to the Tribunal to refer the following question to this court."Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Commissioner of INcome-tax had jurisdiction to act under section 263 of the INcome-tax Act, 1961, as it could be said that prima facie the assessment order was erroneous in law and prejudicial to the interests of the Revenue ?" *However, after a due consideration of the facts of this case, we are not satisfied that there is any justification to direct a reference.

(2.) THE assessee in this case had acquired 493 shares of M/s. Coimbatore Pioneer Mills Limited on April 1, 1963, on a partition, 205 shares by purchase on October 17, 1970, of which 55 shares were acquired at the rate of Rs. 136 per share and 150 shares at the rate of Rs. 131 per share. He also acquired on March 31, 1972, 58 shares of which 43 shares were purchased at the rate of Rs. 100 per share and 15 shares at the rate of Rs. 137 per share. Later, in the year 1974, he had acquired 756 bonus shares. Thus the assessee held in all at the beginning of the assessment year 1979-.80, 1, 512 shares. He sold the said entire shareholdings on September 29, 1978, at Rs. 1, 96, 560.