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Judgment
INDORE BENCH
This is an application u/s 256(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act").
The material facts giving rise to this application, briefly, are as follows :
While framing the assessment of the assessee for the assessment year 1976-77, the Income Tax Officer did not uphold the contention of the assessee that the capital gains arising from the sale of certain land would
not be exigible to tax. Aggrieved by the order passed by the Income Tax Officer, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals) who allowed the appeal. Thereupon, the Revenue preferred a second appeal before the Tribunal and it was dismissed. Aggrieved by the order passed by the Tribunal, the Revenue sought a reference but the application filed by the Revenue in that behalf, was rejected. Hence, the Revenue has filed this application.
Having heard learned counsel for the parties, we have come to the conclusion that the following question of law does arise out of the order passed by the Tribunal :
"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in deleting the capital gains from the total income of the assessee amounting to Rs. 1,03,609 ?"
The application is, therefore, allowed. The Tribunal is directed to state the case and to refer the aforesaid question of law to this court for its opinion. In the circumstances of the case, parties shall bear their own costs of this application.