TaxTMI 
TaxTMI 
2011 (3) TMI 695
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....276 of 2004. 2. ITA No.276 of 2004 has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") against order dated 19.4.2004 passed by the Income Tax Appellate Tribunal, Chandgiarh Bench 'B', Chandigarh in ITA No.135/Chandi/2001, for the assessment year 1997-98, claiming following substantial questions of law:- "i). Whether the ITAT was right in law in holding that impugned agricultural land does not come within the definition "Capital Asset" as defined u/s 2(14) of the Income Tax Act because the land in question is situated in the State of Punjab and beyond 8 kilometers of Municipal limits of Rajpura even when the impugned land is also situated within a distance of 5 ....
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....excluded therefrom. In the present case, the land falls within the State of Punjab and is within the requisite distance from a specified municipality. Even if such municipality is out side the State of Punjab, land nonetheless remains urban. Any other interpretation will defeat the object of the provisions. 6. Learned counsel for the assessee on the other hand submits that if the land was within the requisite distance from a specified municipality of any other State, the same will not be covered unless it was within or within the requisite distance from the municipality of the State. It was submitted that under Article 243Q municipalities are to be constituted in every State and thus the concept of State specific municipality cann....
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....wn as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or (b) in any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specified in this behalf by notification in the Official Gazette". (iv) xx xx xx xx ....
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....ance of 5 Kms. from the municipal limits in all directions Xx 18. PUNJAB 35. Rajpura Areas falling within (i) 1 Km. on either side of Rajpura-Sirhind Road up to a distance of 3 Kms. from the municipal limits on that road. (ii) 1 Km. on either side of Rajpura-BanaurRoad up to a distance of 8 Kms.from the municipal limits on that road. (iii) 1 Km. on either side of Rajpura-Ambala Road up to a distance of 4 Kms.from the municipal limits on that road....
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....The judgments relied upon to submit that all words of a statute should be assigned meaning do not support the contention of the assessee, Including the land in dispute in 'capital asset' does not ignore any word in the definition as assumed by learned counsel. Speech of Finance Minister also does not help the assessee. The relevant extract thereof is as under:- "Sub-clause (a) seeks to amend clause (14) of section 2 of the Income Tax Act which defines the term "capital asset". The amendment seeks to bring within the term "capital asset" agricultural land situated within the limits of any municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any othe....