JAIDAYAL PRANNATH KAPUR Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The Revenue has preferred this appeal challenging the order dated 18.7.2008 passed by the Income Tax Appellate Tribunal in ITA.No.1010/ Mds/2008 for the assessment year 2004-05.

(2.) The above appeal has been admitted on 26.2009 on the following substantials question of law :

(3.) The assessee is a partnership firm dealing in purchase and sale of paper. For the assessment year under consideration (2004-05) relevant to the previous year ending 31.2004, the return of income was filed showing a loss of Rs. 40,486/-. The said return was initially accepted under Section 143(1) of the Income Tax Act, 1961 (hereinafter called the Act) on 27.6.2006. During scrutiny assessment, which was later framed by the Assessing Officer on 29.12.2006, the assessed income was determined at Rs. 1,36,22,800/- and while doing so, the Assessing Officer applied the provisions of Section 50 of the Act to compute the capital gains arising from the transfer of property owned by the assessee situated in Chennai.