COMMISSIONER OF INCOME TAX Vs. JITENDRE SINGH

JUDGEMENT

(1.) THIS reference under Section 256(1) of the Income-tax Act, 1961, is at the instance of the Revenue for answering the following question of law, namely:

(2.) THE assessee's jagir was resumed on September 12, 1956, when he became entitled to payment of compensation on resumption of his jagir. THE Jagir Commissioner passed an order quantifying the amount of compensation in 1962 and the bonds representing the amount of compensation due to the assessee were issued in 1968. THE assessee claimed that the surplus amount obtained by sale of the jagir bonds should be treated only as a capital gain. THE Income-tax Officer rejected the assessee's contention, but that contention was accepted by the Appellate Assistant Commissioner in appeal. THE Tribunal has affirmed the view taken by the Appellate Assistant Commissioner. Aggrieved by this view, the Revenue applied for a reference which has been made by the Tribunal to decide the abovequoted question of law under Section 256(1) of the Act.