AJIT K. SENGUPTA, J.

( 1 ) IN these two references--one at the instance of the Revenue and the other at the instance of the assessee--the following questions have been referred to this court under Section 256 (2) of the Income-tax Act, 1961, for the assessment year 1980-81 : income-tax Reference No. 32 of 1991 (at the instance of the Revenue):" (1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the amount of Rs. 2 lakhs which became payable by the Government of West Bengal to the assessee by virtue of the order dated February 28, 1980, of the Calcutta High Court was a capital asset and profit on transfer of this asset was taxable under the head 'capital gains' ? (2) Whether the Tribunal was justified in holding that, in determining the capital gains on the transaction between the assessee and the Government of West Bengal resulting from the order dated February 28, 1980, of the Calcutta High Court, the cost of the capital asset would be the amount spent towards stamp duty and other legal expenses incurred for obtaining the decree ?"

( 2 ) INCOME-TAX Reference No. 9 of 1992 (at the instance of the assessee):"1. Whether, o

Click Here to Read the rest of this document