COMMISSIONER OF INCOME TAX Vs. UMASHANKAR SARAF

JUDGEMENT

(1.) THE two questions which have been referred at the instance of the Revenue in this reference are as follows :

(2.) THE assessee originally filed a return on August 30, 1969, showing an income of Rs. 13,319. However, later when in the course of assessment proceedings of the HUF of which the assessee was the karta, for the assessment year 1968 -69, certain credits in the name of the assessee in the books of another firm Rai Bahadur Seth Durgaprasad (Mining) in which the HUF was a partner were noticed, the assessee filed a revised return for the assessment year 1969 -70 showing an income of Rs. 57,960. The additional income was Rs. 43,800 which was shown by the assessee under the head 'Capital gains' was on the sale of certain shares. The assessee wrote a letter to the ITO on December 27, 1967, and September 29, 1967, respectively, represented an advance received against sales of 78 shares of Rs. 100 each of M/s. Bombay Metal and Alloys Manufacturing Co. and 378 shares of Rs. 100 each of the same company. The assessee informed the ITO that the transfers of the shares were made on April 22, 1968, for those amounts, Thus the assessee requested the ITO to treat those transactions as shown in the revised return filed for the assessment year 1969 -70. The assessment of the assessee was completed on March 10, 1972. And his income determined at Rs. 67,580. The total income was reduced in appeal to Rs. 59,516 including the capital gains of Rs. 43,800.

(3.) ARISING out of this order of the Tribunal, the questions reproduced above have been referred.