Referable question of law found on deletion of capital gains, requiring the Tribunal to state a case for opinion.

A reference under section 256(2) was sought on whether the Tribunal was justified in deleting capital gains from the assessee's total income. The High Court held that the proposed issue disclosed a referable question of law arising out of the Tribunal's order, making it fit for reference. The application was therefore allowed and the Tribunal was directed to state the case and refer the question to the Court for opinion.

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Issues: Whether a question of law arose from the Tribunal's order so as to warrant a reference under section 256(2) of the Income-tax Act, 1961.

Analysis: The application sought a reference on the point whether the Tribunal was justified in deleting the capital gains from the assessee's total income. The Court found that the proposed question satisfied the requirement of a referable question of law arising out of the Tribunal's order.

Conclusion: The application was allowed and the Tribunal was directed to state the case and refer the question of law to the Court for opinion.

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