Capital gains tax on sale of agricultural land was held leviable after the retrospective amendment to the capital asset definition.

Capital gains tax was held leviable on the sale of the land because the Tribunal's view that no tax was chargeable was inconsistent with earlier court decisions and with the retrospective amendment to the definition of "capital asset" under section 2(14) of the Income-tax Act, 1961. The land was claimed to be agricultural land, but that contention failed in light of the amended statutory definition, and the assessee's challenge was rejected.

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Issues: Whether capital gains tax was leviable on the sale of the land in question.

Analysis: The land sold was claimed to be agricultural land, but the Tribunal's view that no capital gains tax was chargeable was found to be inconsistent with the earlier decisions of the Court and with the retrospective amendment made to the definition of capital asset under section 2(14) of the Income-tax Act, 1961 by section 3 of the Finance Act, 1989.

Conclusion: The question was answered in the negative, holding that capital gains tax was leviable on the sale of the land and the assessee's contention failed.

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