COMMISSIONER OF INCOME-TAX Vs. K C MAHAJAN

JUDGEMENT

(1.) THE following questions of law have been referred by the Income-tax Appellate Tribunal, Amritsar (for short "the Tribunal"), under Section 256 (1) of the Income-tax Act, 1961 (for short "the Act") :

(2.) IF the answer to question No. 1 is in the negative, whether the assessee is entitled to the deduction of the value of solatium as on January 1, 1964, in computing the capital gains ?" 2. Basically, the questions in both the assessment years (1977-78 and 1978-79) are identical.

(3.) IN the previous year relevant to the assessment year 1978-79, the assessee had sold certain properties and, on such sales, he had declared capital gains at Rs. 11,103. This was accepted by the Assessing Officer and, after allowing statutory exemption of Rs. 5,000 and further exemption at the rate of 25 per cent. under Section 80-T of the Act, the amount of Rs. 4,578 was brought to tax under the head "capital gains". The sum of Rs. 3,353 was further added to the assessee's income under the head "capital gains" as the assessee had received in this year this money by way of solatium on compulsory acquisition of land.