COMMISSIONER OF INCOME TAX Vs. R K JAIN

JUDGEMENT

(1.) THIS is a petition under S. 256(2) of the IT Act, 1961 (for short, "the Act"), for directing the Income -tax Appellate Tribunal, Delhi Bench "C", New Delhi (hereinafter described as "the Tribunal"), to refer the following questions for the opinion of this Court : "(a) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that S. 52 of the IT Act, 1961, was not applicable to the facts of the case ? (b) Whether, on the facts and in the circumstances of the case, the Tribunal was right in reducing the sale value per share to Rs. 15.75 as against prevailing market rate per share at Rs. 26 for the purpose of computing the capital gains tax -

(2.) IT is borne out from the record that the respondent -assessee filed a return on 31st July, 1987, declaring his income as Rs. 2,25,990. Later on, he filed, the revised return showing the income as Rs.1,85,990. The AO did not accept his return and by an order dt. 21st July, 1989, passed under s. 143(3) of the Act, he assessed the income of the respondent to Rs. 4,26,450 by taking into consideration the capital gain on the sale of shares as Rs. 3,62,400 by adopting the rate of Rs. 25 per equity share on the sale of 22,650 shares of Nuchem Plastics Ltd. as against the sale rate of Rs. 15.75 per share shown by the assessee. The CIT(A) allowed the appeal filed by the respondent and directed the AO to recompute the chargeable capital gain by adopting the sale price of the shares at the rate of Rs. 15.75 instead of Rs. 26 per share. The Tribunal confirmed the order passed by the CIT(A) and dismissed the appeal filed by the Revenue.

(3.) WE have heard Shri R.P. Sawhney and perused the record.