COMMISSIONER OF INCOME TAX Vs. PUSHPRAJ SINGH

JUDGEMENT

(1.) THIS is an application under Section 256(2) of the Income-tax Act, 1961, at the instance of the Revenue. The Revenue has raised the following two questions of law for answer by this court by calling for the statement of the case :

(2.) THE brief facts giving rise to this reference are that the respondent-assessee in respect of the assessment year 1981-82 had offered capital gains arising out of sale of shares and securities for taxation. In his written reply dated March 1, 1984, the assessee had mentioned that these shares were coming down since before the merger of the State but the Government took over and later on gradually transferred to him. It was, therefore, opted that the value as on January 1, 1964, should be taken as the cost of the asset for the purpose of computation of capital gains. Subsequently, the assessee filed a written reply again on March 20, 1984, stating that the shares were received by him from the Government of India in 1971-72 and their cost price for the purpose of capital gains may be taken on the date of receipt from the Government of India. It was further offered that the value of the bonds should be taken at the original cost, i.e., face value, and the respondent assessee himself offered for taxation the capital gains arising out of shares and securities and during the course of assessment proceedings, he never disputed the ownership of the shares and securities. THE Income-tax Officer accordingly assessed the capital gains at Rs. 27,70,931 as shown by the assessee.

(3.) SO far as the first question is concerned, the Tribunal held that this is a question of fact. As regards the second question, the Tribunal has decided the matter in the light of the decision of this court. The Tribunal has, therefore, rejected the application under Section 256(1) of the Act. Hence, this application under Section 256(2) of the Act has been moved by the Revenue on the aforesaid two questions of law.