1972 (11) TMI 5

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....for the two years 1965-66 and 1966-67 read as follows: "Whether, on the facts and in the circumstances of the case, the profits on the sale of cooly lines situated on agricultural lands are liable to be charged to income-tax under section 45 of the Income-tax Act ? Does the exemption of 'agricultural land' from the definition of capital assets in section 2(14)(iii) take in buildings situated on ....

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....d that being the real transaction the consideration for such sale should not be bifurcated in an artificial manner so as to arrive at some figure which formed a part of the consideration as that applicable to the sale of a part of the property that was sold. In such cases whether there can be said to be a sale of agricultural land or, what is more important, whether there was a transfer of a capit....

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....s and, therefore, fell within exemption (iii) to the definition "capital asset" in section 2(14) which we have read. The question is whether it is possible to say that the "cooly lines" are agricultural lands. It was contended that these "cooly lines" were agricultural lands on the basis that the principle that what is attached to the land belongs to the land must not only be applied but the chara....

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....e decision of the Privy Council in Sirkar v. Mahadeva Iyer Venkitasubramania Iyer and the Supreme Court also approved the decision of the Privy Council in the decision in Dr. K. A. Dhairyawan v. J. R. Thakur and further this court again in Parameswaran Nadar Chellappan Nadar v. Krishnan Nair reiterated the position. It appears to us, therefore, impossible to contend that what is attached to the la....