- (1.) THIS is an Income Tax Reference under section 256(1) of the Income Tax Act in which the following question has been referred to us for our opinion : 'Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was wholly justified in holding that no capital gains arose to the assessee during the previous years for the assessment years 1972 -73 and 1973 -74 ?'
(2.) WE have carefully perused the Tribunals Appellate order. In our opinion the Tribunal has rightly hold that the cost of acquisition of the land is to be its costs in the year 1967 at the price at which it was allotted by the Development Authority and not the price of the year 1954. There is no infirmity in the impugned orders of the Tribunal, we therefore, answer the question referred in the affirmative i.e., in favour of the assessee and against the department.;