COMMISSIONER OF INCOME-TAX VS N. KISHORE SETTLEMENT
1999 P T D 3148
[236 I T R 35]
[Supreme Court of India]
Present: S. C. Agrawal, K. Venkataswami and A. P. Misra, JJ
COMMISSIONER OF INCOME-TAX
Versus
N. KISHORE SETTLEMENT
Civil Appeals Nos. 2291 and 2292 of 1996, decided on 19/01/1998.
Income-tax---
----Reference---Capital gains---Bonus shares--Question regarding computation of capital gains on the basis of decision of Supreme Court in Srinivasa Setty' s case---Question of law---Indian Income Tax Act, 1961, Ss.45 & 256.
Held, that the questions whether, in law and on the facts, the Appellate Tribunal was right in confirming the view taken by the Commissioner of Income-tax (Appeals) on directing the Income-tax Officer to recompute the capital gains on the basis of the principles laid down by the decision of the Supreme Court in the case of B.C. Srinivasa Setty (1981) 128 ITR 294 (SC); whether, in law and on the facts, the Appellate Tribunal was right in observing that it would make no difference in the methods of ascertaining the value of original shares as per the option of the assessee and the value of the bonus shares in accordance with the principles laid down by the Supreme Court in the case of B.C. Srinivasa Setty (1981) 128 ITR 294 (SC) and, therefore, the decision of the Commissioner of Income-tax (Appeals) was correct, were questions of law which had to be referred to the High Court.
CIT v. Sakarlal Balabhai & Co. Ltd. (1996) 222 ITR 486 (SC) and CIT v. B.C. Srinivasa Setty (1981) 128 ITR 294( SC) ref.
JUDGMENT
These appeals are covered by the judgment dated September 26, 1996, Civil Appeal No.3180 of 1992 titled CIT v. Sakarlal Balabhai & Co. Ltd. (1996) 222 ITR 486 (SC) and connected matters wherein this Court had set aside the orders passed by the High Court rejecting the applications of the Revenue filed under section 256(2) of the Income Tax Act, 1961, and directed the Appellate Tribunal, Ahmedabad, to refer the questions of law in the different cases as specified hereinabove for the decision of the High Court and forward the same alongwith the statement of case and the relevant documents.
In the same terms these appeals are allowed and the 'orders of the High Court rejecting the applications of the Revenue filed under section 256(2) are set aside and the Income-tax Appellate Tribunal, Ahmedabad, is directed to refer the following questions of law raised by the Revenue for the decision of the High Court and forward the same alongwith the statement of case and the relevant documents:
"Whether, in law and on facts, the Appellate Tribunal is, right in confirming the view taken by the Commissioner of Income-tax (Appeals) on directing the Income-tax Officer to re-compute the capital gains on the basis of the principles laid down by the decision of the Supreme Court in the case of Srinivasa Setty (1981) 128 ITR 294?
Whether, in law and on facts, the Appellate Tribunal is right in observing that it would make no difference in the methods of ascertaining the value of original shares as per option of the assessee and the value of the bonus shares m accordance with the principles laid down by the Supreme Court in the case of Srinivasa Setty (1981) 128 ITR 294 and, therefore, the decision of the Commissioner of Income-tax (Appeals) was correct?"
The Tribunal will take appropriate steps to enable the High Court to dispose of the matters finally. The appeals are allowed accordingly. No order as to costs.
M.B.A./3296/FC???????????????????????????????????????????????????????????????????? ?????????? Appeals allowed.