ASHOK KUMAR JALAN Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This is a reference under section 256(1) of the Income Tax Act, 1961 . The following question has been referred to us for determination :

(2.) In our view, the question as framed does not bring out correctly the point at issue which we are required to determine. It is also framed in a manner which begs the question. With the consent of the parties, there fore, we have reframed the question as follows :

(3.) The assessee purchased National Defence Gold Bonds, 1980, on April 3, 1980, at the price of Rs. 1,125 per bond. He purchased bonds worth 1,000 grams of gold. The actual payment of the purchase price was made by him by cheque on September 29, 1980. Under the National Defence Gold Bonds, 1980, Scheme, the bonds were to be exchanged by the holder for gold on October 27, 1980. The assessee, however, sold these bonds in one lot on October 1, 1980. He made a profit of Rs. 33,500.