L RAJESHWAR PERSHAD Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) IF an amendment in the Income-tax Act, 1961 (hereinafter referred to as "the Act"), is brought into effect from the 1st of April, of a particular financial year, "whether that amendment would apply to the assessment for that year" is the question of law which we are called upon to determine in this reference,

(2.) DURING the year 1972-73 which ended on March 31, 1973, L. Rajeshwar Pershad (hereinafter called "the assessee") sold ornaments/jewellery for Rs. 56,500. According to the assessee, no capital gain accrued on the sale of jewellery. However, the Income-tax Officer did not agree with the stand of the assessee and since the amendment contained in Section 2 (14) (ii) of the Act came into effect on April 1, 1973, it was held that in the assessment year 1973-74, because of the amended provision, capital gains tax was leviable on the sale of jewellery. After allowing necessary deductions, etc. , the net capital gain was determined at Rs. 24,550.

(3.) FEELING aggrieved from the aforesaid order, the matter was taken up in appeal before the Appellate Assistant Commissioner where also the assessee remained unsuccessful.