2000 (12) TMI 898

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....motion of the assessee under section 256(1) of the Income-tax Act, 1961 ('the Act') by the Tribunal, Delhi Bench 'B', and following questions have been referred for opinion of this Court : "1. Whether, on the facts and in the circumstances of the case, the agricultural land of the assessee-firm in Village Saran acquired by the Haryana Government under the Land Acquisition Act was a capital ....

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....stified in confirming the order of the Commissioner of Income-tax passed under section 263 of the Income-tax Act, 1961 ?" 2. Factual position as indicated in the statement of case is as follows : The assessee is a partnership firm which carried on at the relevant point of time, i.e., the assessment year 1972-73, business in money-lending and in share-dealings. It also owned immovable proper....

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.... only on 15-1-1972 whereas it had been acquired before that date on 13-9-1971 and 6-1-1972. The assessee contended that the land being agricultural in nature was not a capital asset within the meaning of section 2(14) of the Act as on the date of transfer. The ITO accepted this stand. Subsequently, action was taken under section 263 of the Act by the Commissioner holding that the action of the ITO....

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....n up together. The assessee's stand was that the property in question could not be held to be a capital asset and, therefore, the levy was uncalled for. Further, it was contended that the Faridabad Administration Complex is not a municipality. However, the Tribunal analysed various provisions of the Municipal Act vis-a-vis those contained in the Faridabad Complex (Regulation and Development) Act, ....