Commissioner of Income Tax vs Chandrakant C. Gandhi

G.T. Nanavati, J.—The Tribunal has referred the following three questions to this Court under s. 256(1) of the IT Act, 1961 :

"(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law holding that the capital gain is required to be computed after taking the market value of the assets at the time of acquisition by the HUF as cost of acquisition thereof to the assessee HUF ?

(2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the provisions of s. 49(1)(ii) of the Act were not applicable ?

(3) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the cost of acquisition of the land in question to the assessee should not be its fair market value as on 1st January, 1954 ?"

All the three questions are answered in the affirmative, that is in favour of the assessee and against the Revenue following the decision in Commissioner of Income Tax, Gujarat Vs. Ashiwin M. Patel, . The reference is disposed of accordingly with no order as to cost.