- (1.) After hearing learned counsel appearing for the Revenue, we are satisfied that the order of the Income Tax Appellate tribunal does give rise to a question of law and the High court should have called for a reference under S. 256 (2) of the Income Tax Act, 1961. We find that the Karnataka high court in Kirloskar Asea Ltd. v. commissioner OF INCOME TAX has taken a contrary view. Accordingly we allow the appeal and set aside the order of the High court and direct the tribunal to refer to the High court the following question for the opinion of the High court namely : Whether on the facts and in the circumstances of the case, the tribunal was justified in holding that a sum of Rs. 96,989. 00 being the surplus realised by the assessee on the repatriation of the sterling balance on 7/07/1967 is not chargeable to income-tax under the capital gains under S. 45 of the Income-tax Act, 1961 for the assessment year 1968-69.
(2.) There is no order as to costs.;