COMMISSIONER OF INCOME TAX Vs. SODHI HARBHAJAN SINGH

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, Chandigarh Bench (in short "the Tribunal") has referred the following question of law for opinion of this Court under Section 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act") arising out of its order dt. 28th July, 1993 in ITA No. 1025/Chd/1986 for the asst. yr. 1980-81:

(2.) The assessee owned property which was acquired under the provisions of the Punjab Development of Damaged Areas Act, 1951 (in short "the Punjab Act"). The AO taxed the amount of capital gain by taking the transfer of property on 27th Aug., 1979 on which date the award of compensation was given. The assessee challenged this by submitting that date of transfer of property should be when possession was taken, i.e. on 21st April, 1971 and, therefore, in the asst. yr. 1980-81, no tax could be assessed as capital gain. The CIT(A) dismissed the appeal of the assessee. However, the Tribunal upheld the contention of the assessee in the following terms:

(3.) We have heard learned Counsel for the Revenue. None appeared for the assessee.