Santosh S.sukhranie v. Commissioner Of Income Tax,Mumbai

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX REFERENCE NO.141 OF 1990 Santosh S.SukhraniE/2,Flushal Apartments,21st Road, Bandra,Mumbai - 400 060. ..Applicant Vs. Commissioner of Income Tax,Mumbai, ..Respondent Ms.Asifa Khan, for the Applicant.None for the Respondent. CORAM :- DR.S.RADHAKRISHNAN &A.V.NIRGUDE, JJ.DATE : 18TH JUNE, 2008 P.C. 1.Heard the learned Counsel for the Applicant. None appeared for the Respondent, though served. 2.The above Reference Application pertains toA.Y.1982-83 and the only one question of law has beenreferred to this Court, which reads as under: thetheoftax ? December,1980 for 500 gm. and 4050 gm., respectively. 3.The Income Tax Officer, while assessing, is not relevant and it is the only date of maturity, which is to be construed as date of redemption. 4.Aggrieved thereby, the Appellant again had approached the Income Tax Appellate Tribunal. Thesaid Tribunal also by a judgment and order dated 28thNovember,1988 relied on a judgment of the Tribunal inthe case of Executors and Trustees of the Estate ofLate , Shri.S.G.Saraiyawhich was a case under WealthTax and had concurred with the view of theCommissioner of Income Tax (Appeals) and held that thedate of calculating the capital gain would be date ofmaturity and not the date on which they were actually redeemed. Aggrieved thereby, the Appellant hadpreferred Miscellaneous Application for rectificationof the above issue by way of mistake. However, theTribunal had refused to interfere with the same, andhad made a reference to this Court being the aforesaidquestion of law. 5.Ms.Asifa Khan, the learned Counsel for theAssessee brought to our notice the press communiquedated 14th March,1985 issued by the Income TaxDepartment of the Government of India, which reads asunder:For the purpose of computation of capitalgains, the cost of acquisition of gold be themarket value of the Bonds on the date ofredemption.6.Ms.Khan pointed out that the above communiqueis explicitly clear that the computation of capitalgains should be based on the cost of acquisition ofthe gold be the market value of the bonds on the date Act and it had not application whatsoever in the present case even otherwise. 7.We are clearly of the view that the above very categorically mentions that the date of redemption should be given full effect. and against the Revenue. Accordingly, the Reference Application stands disposed of. (A.V.NIRGUDE,J.) (DR.S.RADHAKRISHNAN,J.)