Arvindbhai Chinubhai (HUF) V. Commissioner of Income Tax

ITR/155/1985

AI Insights

The case involves Arvindbhai Chinubhai (HUF) versus the Commissioner of Income Tax, where two questions were referred to the High Court of Gujarat under Section 256(1) of the Income Tax Act, 1961. The first question pertained to the calculation of deduction under Section 80T concerning capital gains and losses. The second question involved the consideration of depreciation on shares of Sayaji Mills Ltd. while computing capital gains on the sale of shares of Rajesh Textile Mills Ltd. The court's decisions were based on precedents and interpretations of the relevant sections of the Income Tax Act.

• Counselvise Citation: [2000] 140 COUNSELVISE.COM (IT) 676211 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 10-10-2000
• Assessment Year: misc
• Other Referred Cases: Ashaben & Ors. Vs. C.I.T. (1999) 237 ITR 561, Dhan Kapadia Vs. C.I.T. 63 ITR Page 651
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: MANISH BHATT
• Assessee Lawyers: J P SHAH
• Keywords: Capital Gains; Capital losses; Deduction; Depreciation; Income Tax; Shares
• Section: 256(1); 80T

Judgement Text

" IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No 155 of 1985 For Approval and Signature: Hon'ble CHIEF JUSTICE MR DM DHARMADHIKARI and Hon'ble MR.JUSTICE A.R.DAVE ============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements? 2. To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement? 4. Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder? 5. Whether it is to be circulated to the Civil Judge? : NO -------------------------------------------------------------- ARVINDBHAI CHINUBHAI (HUF) Versus COMMISSIONER OF INCOME TAX -------------------------------------------------------------- Appearance: MR JP SHAH for Petitioner MR MANISH R BHATT for Respondent No. 1 -------------------------------------------------------------- CORAM : CHIEF JUSTICE MR DM DHARMADHIKARI and MR.JUSTICE A.R.DAVE Date of decision: 10/10/2000 ORAL JUDGEMENT (Per : MR.JUSTICE A.R.DAVE) At the instance of the assessee, the following 2 questions have been referred to this Courts under the provisions of Section 256(1) of the Income Tax Act, 1961 for our opinion:- \"1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that deduction u/s. 80T in respect of capital gain made on the sale of shares should be worked out after setting off the capital loss suffered on the sale of other shares? 2. Whether, the Appellate Tribunal has not erred in law and on facts in confirming the order of the Commissioner of Income-tax (Appeals) in directing the Income-tax Officer to take into consideration the depreciation on the value of shares of Sayaji M