COMMISSIONER OF INCOME TAX Vs. SANGYA JAIN

JUDGEMENT

(1.) THE Commissioner of Income-tax, Haryana, Rohtak, has filed this petition under Section 256(2) of the Income-tax Act, 1961, for issuance of a mandamus directing the Income-tax Appellate Tribunal, Delhi Bench, New Delhi, to refer the following question of law to this court for its opinion, along with the statement of the case :

(2.) THE assessee derived income from interest on debentures and capital gains, both long-term and short-term, on sale of equity shares of Oswal Agro Mills Limited. THE computation as well as levy of tax at the rate of 20 per cent. under Section 115E in respect of long-term capital gains was accepted by the Revenue. In respect of short-term capital gains, there is a dispute regarding computation of tax. THE assessee claimed that tax at the rate of 20 per cent. was applicable both for long-term and short-term capital gains, whereas the case of the Revenue was that on short-term capital gains, the normal rate of tax was applicable.