Capital gains tax on transfer of agricultural land upheld, following binding precedent against the assessee.

Income arising from the transfer of agricultural land was held to be exigible to capital gains tax, following the court's earlier binding ruling on the point. The Tribunal's view that no capital gains tax could be levied on such transfer was therefore unsustainable, and the issue was answered against the assessee and in favour of the Revenue.

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

Analysis: The answer was governed by the court's earlier ruling that income arising from the transfer of agricultural land is exigible to capital gains tax. In view of that binding precedent, the Tribunal's view that no capital gains tax could be levied on the transfer was not sustainable.

Conclusion: The question was answered in the negative, against the assessee and in favour of the Revenue.

Ratio Decidendi: Income arising from the transfer of agricultural land is liable to capital gains tax.

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