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TMI Blog1989 (7) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... 45,780. She filed her return for the asst. yr. 1982-83 declaring short-term capital gain of Rs. 18,332 out of the date of acquisition, i.e., 13th April, 1981, and the date of the sale. The ITO assessed the same accepting the return. The CIT, while scrutinising the assessment records, passed an order under s. 263 directing the ITO to treat the date of acquisition of the gold 27th Oct., 1980 which was the date of maturity of the gold bonds and thereby to assessee the income of the assessee, after ascertaining the difference in the price of gold on 27th Oct., 1980 and the date of the sale. Being aggrieved with the said order, the assessee is in appeal before the Tribunal (ITA No. 2518/Bom/1985). 3. While giving effect to the order of the CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned counsel further submitted that the date of redemption will be treated to be the date of acquisition of the gold. In the present case, it was contended, the date of redemption is 13th April, 1981 when the assessee had redeemed had redeemed the gold bonds and received the gold in exchange of the same. The words "redemption" and "maturity" are not synonymous to each other, and the date of maturity in the case of gold bonds is the date which the government notifies for the maturity of the gold bonds. According to him, the date of redemption will be the date on which the bonds are actually redeemed. In these circumstances, he submitted that the order of the CIT passed under s. 263 deserves to be set aside and that the ITO restored. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the bonds were also in the nature of debt or liability and their date which, in this case, was 27th Oct., 1980. When the gold bond is issued to a person, there is an agreement between him and the government that the bond will be returned on a certain future date, called the maturity date and during that time, he has the right to interest would cease and it would no longer be assigned. Therefore, on the maturity date, the character of this document which was the bond, would change. It would not bear interest and it would lose assignablity. On the maturity date, it is merely a document of title to the gold and its presentation to the Reserve Bank would entitle the holder of that document to the delivery of the gold. Thus, in these circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity should have held the capital gains as long term capital gains and not as short term capital gains. In this case assessee herself had submitted the return declaring the income from the sale of gold as short term capital gains besides, she herself had taken the plea that the date of acquisition should be treated as 13th April, 1981 In view of this the assessee is now estopped from taking contrary plea that the income of capital gains should be treated as long term capital gains and not short term capital gains as the gain had arisen only during a short span of time i.e about a month. Hence, this ground is found against the assessee. 9. The second ground is regarding interest under s. 217 (1A) This ground has to be decided in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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