TMI Blog1988 (1) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... pital gains on the property sold under sections 48 and 49 of the Income-tax Act, 1961 ? (2) Whether the Tribunal was right in holding that the assessee was not entitled to change her option for deduction of value/cost for computation of capital gains from section 55(2)(ii) to section 49, when both the claims were made in the return itself ? " The material facts giving rise to this reference, briefly, are as follows The assessee is assessed in the status of an individual. In the return filed by the assessee for the assessment year 1979-80, the assessee disclosed that a house which was received in gift and was purchased by the donor for a sum of Rs. 1,65,000 was sold on March 3, 1979, for a sum of Rs. 2,00,000. The assessee claimed d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid questions of law have been referred to this court for its opinion. Shri Chaphekar, learned counsel for the assessee, contended that the provisions of section 55(2)(ii) of the Act could not be construed to mean that if, in the return, the assessee had claimed deduction of the cost of acquisition of the property for computation of the capital gains on the basis of the market value of the asset as on January 1, 1964, the assessee was precluded from contending that the cost of asset to the previous owner be taken to be the cost of acquisition. It was urged that the option available to the assessee under section 55(2)(ii) of the Act could be exercised by the assessee till the income chargeable under the head "Capital gains" was finally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee till the income of the assessee chargeable under the head "Capital gains" is finally computed or whether the assessee is debarred from contending that the cost of acquisition of the capital asset be taken to be the cost of the capital asset to the previous owner, if, in the return, the assessee had claimed deduction of the cost on the basis of the market value of the property as on January 1, 1964. At this stage, it would be instructive to refer to the provisions of section 3 of the Act, which define "previous year". Sub-section (4) of section 3 enacts that where, in respect of a particular source of income or in respect of a business or profession newly set up, an assessee has once exercised the option, he shall not, in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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