JUDGMENT

S.B. Sinha, C.J.

1. All the references made at the instance of the Revenue in terms of Sub-section (1) of Section 256 of the Income Tax Act, 1961 (hereinafter referred to as the Act) by the Income Tax Appellate Tribunal, Delhi Bench 'B' New Delhi (hereinafter referred to as the Tribunal) involving common questions of law and fact were taken up for hearing together and are being disposed of by this common judgment.

2. The questions which have been referred for opinion of this Court, are as follows:-

"1. Whether on the facts and in the circumstances of the case, the Tribunal is correct in law in upholding the order of the C.I.T. (Appeals) in excluding the profits arising from the sale of capital assets located outside India from the world income?

2. Whether on the facts and in the circumstances of the case, the Tribunal is correct in law in upholding the order of C.I.T. (Appeals) that the profit due to change in exchange rate of the Australian Dollars is a capital gain?"

3. However, in ITR No. 228 of 1983, only the second question and in ITR No. 229 of 1983, only the first question has been referred to this Court for its opinion.

4. The factual matrix of the matter i