Advocates:
['M/S CHITRA VENKATARAMAN', '', 'J NARESH KUMAR', 'M/S D PADMA PRAKASH', '', 'S SWARNAMBIKAI']

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 04.03.2002

CORAM

THE HONOURABLE MR.JUSTICE V.S.SIRPURKAR

AND

THE HONOURABLE MR.JUSTICE K.RAVIRAJA PANDIAN

TAX CASE NO.357 OF 1996

(Reference No.346 of 1996)

The Commissioner of Income-Tax,

Tamil Nadu-V

Madras. ... Applicant

Versus

Mr.K.Jeelani Basha

Trichy. ... Respondent

Prayer: Case referred by the Income-Tax Appellate Tribunal, Madras

under Section 256(1) of the Income Tax Act, 1961 for decision in R.A.

No.296/M/95 in I.T.A.No.570/ Mds/ 1994.

! For Applicant : Mrs.Chitra Venkataraman

Sr.Standing Counsel for Income Tax

For Respondent : Mr.C.V.Rajan for

M/s.D.Padma Prakash and

S.Swarnambikai

: JUDGMENT

(Judgment of the Court was delivered by V.S.SIRPURKAR,J.)

1. The interesting question of law on the backdrop of more

interesting facts was referred to us.

2. The question is, "whether on the facts and in circumstances of the

case, the Appellate Tribunal was right in law in its interpretation of the

provisions of Section 2(47)(v) of the Income Tax Act and not upholding the

assessment for the entire capital gains in the assessment for the assessment

year 1992-93."

3. Few facts of the case are: The assessee is an individual. He

held a l