Reopening of assessment and capital gains on jewellery found to raise a referable question of law under tax law.

The article concerns whether a legal question arose for reference on the Income-tax Officer's reopening of assessment under section 147(b) in relation to capital gains on jewellery. It explains that the Tribunal had refused reference, but the Court treated the reopening issue and the capital gains computation provisions as involving a referable question of law. The Court therefore held that the matter was fit for reference and directed the Tribunal to refer the question framed by the Court.

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Issues: Whether, on the facts and in the circumstances of the case, a question of law arose for reference on the issue whether the Income-tax Officer was justified in initiating proceedings under section 147(b) in relation to the computation of capital gains on jewellery.

Analysis: The application sought a reference on the reopening of assessment and the computation of capital gains with respect to jewellery. The record showed that the Tribunal had declined to refer the question, but the Court found that the controversy did involve a legal question for consideration, particularly in the context of the reopening under section 147(b) and the computation provisions governing capital gains.

Conclusion: A question of law arose and the Tribunal was directed to refer the question framed by the Court.

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