P. Govindan Nair, J.

1. This is a reference at the instance of the assessee under S.256(1) of the Income Tax Act, 1961. The questions referred are these:

"(i) Whether, on the facts and in the circumstances of the case, the Income Tax Officer , had jurisdiction to invoke the provisions of S.154 of the Income Tax Act, 1961and to revise the assessment originally made?

(ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the provisions of S.54(ii) are attracted to the sale effected by the assessee on 1-7-1962?

(iii) Whether the computation of capital gains assessable to tax is in accordance with law?"

2. The year of assessment is 1963-64 the corresponding accounting period being that which ended on 31-3-1963. The assessee, an individual sold his residential house on 25-7-60. He purchased a new house for Rs. 19,550/-. The capital gains in relation to those transactions computed in accordance with the provisions of the Indian Income Tax Act, 1922 was a sum of Rs. 15,029/-. No tax on the capital gains Was however imposed on the assessee under that Act in view of the provisions in sub-s.(4)(b)(ii) of S.12B of that Act. The assessee