TMI Blog2009 (7) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... date of sale of the asset which in the present case is for the assessment year 1993-94 – decided in favour of the Revenue and against the assessee - 6 of 2000 - - - Dated:- 20-7-2009 - R. K. AGARWAL and S. K. GUPTA JJ. R. S. Dwivedi for the assessee. Shambu Chopra for the Commissioner. JUDGMENT 1. The Income-tax Appellate Tribunal, Allahabad, has referred the following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for opinion to this court: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally justified in holding that the capital gain arising from the transfer of shares, which was chargeable to tax in the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sale of the shares was effected. In his order dated November 30, 1993, the Assessing Officer took a view that since section 48 of the Act had been amended with effect from April 1, 1993, the basic exemption of Rs. 10,000 and further deduction of 60 per cent, of the balance capital gains was not available. In appeal the submission of the assessee before the Commissioner of Income-tax (Appeals) was that the second proviso to section 48 providing for deduction of indexed cost of acquisition, applicable to the assessment year 1993-94, should be applied. Alternatively, it was submitted that the capital gains, as computed in the return (as per the provisions of section 48 as it stood applicable to the assessment year 1990-91) should be accepted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 54F of the Act the capital gains is chargeable in the previous year on the expiry of three years from the date when sale of capital assets have been effected. 9. We have given thoughtful consideration and we find force in the submission made by Sri Shambhu Chopra. The proviso to section 54F specifically deals with the situation where the assessee who in order to save himself from payment of tax of capital gains decided to either purchase a house or construct the house within the specified period and fails to do so in that event the statute provides as to when capital gains is to be treated and in which year it is to be taxed. It is because of postponement of capital gains the Income-tax Act takes care of such a situation. Not only in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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