Srinivasa Iyengar, J.—Pursuant to the order of this court in C.P. No. 54 of 1969, dated July 15, 1970, the Income Tax Appellate Tribunal, Bangalore Bench, has referred the following question of law arising out of its order in I.T.A. No. 14800(?) of 1964-65, for the opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal is justified in not deducting Rs. 41,517 while computing the capital gains ?

The computation of the capital gains was for the assessment year 1962-63 (the accounting year ending March 31, 1962). The assessee is the widow of J. B. Pinto who was a partner in five firms. The assessee filed a return, and thereafter a revised return, showing an income of Rs. 18,150 and a loss of Rs. 94,66 under capital gains. The revised return came to be filed consequent on it being pointed out by the Income Tax Officer that she had not shown any income in respect of capital gains arising on the release by her of her rights in the firms in which her husband was a partner to which she had become entitled on his death.

J. B. Pinto died on July 8, 1958. The total of the amounts standing to his credit in the accounts of the firms amounted to Rs