AI Structured Summary
Not yet generated for this judgment
Judgment
ASHOK BHAN, J. :
The CIT, Haryana, Rohtak, has filed this petition under s. 256(2) of the IT Act, 1961, for issuance of a mandamus directing the 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 :
"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that mention of specific words long-term capital gains in s. 115E would not necessarily implicate that short-term capital gains have been excluded from the applicability of such provisions ?"
Assessee derived income from interest on debentures and capital gains, both long-term and short-term, on sale of equity shares of M/s. Oswal Agro Mills Limited. Computation as well as levy of tax at the rate of 20 per cent under s. 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. Assessee claimed that rate of tax at the rate of 20 per cent was applicable, both for long-terms and short term capital gains, whereas the case of the Revenue was that on short-term capital gains, normal rate of tax was applicable.
Tribunal, on consideration of the relevant provisions of law, held that short-term capital gains falls within the definition of investment income under s. 115E r/w s. 115C.
A question of law does arise from the order of the Tribunal. There is no direct judgment either of the Supreme Court of India or of this Court on the point involved in this case. The question of law as claimed by the Revenue is not happily worded. After perusal of the order of the Tribunal, we are of the view that the question of law has to be reframed and, accordingly, we direct the Tribunal to refer the following question of law along with the statement of the case for the opinion of this Court instead of the one claimed by the Revenue :
"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the short-term capital gains are included in the long-term capital gains in ss. 115E and 115C and that the short-term capital gains is an investment income within the meaning of s. 115C(c) ?"