TaxTMI 
TaxTMI 
2002 (10) TMI 57
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....agricultural lands in village Nangal Dewat, Delhi, is chargeable to tax?" Since in all the references an identical question has been referred, these are being disposed of by this common order. As the format of the question itself suggests, the issue arising for consideration is whether the agricultural land in village Nangal Dewat constitutes a capital asset within the meaning of section 2(14)(iii)(a) of the Act and exigible to capital gain taxed on its transfer. The question posed being purely legal, it is unnecessary to state the facts of each of the cases, except to note that all the references pertain to the assessment year 1974-75. We have heard Mr. R.C. Pandey and Mr. R.D. Jolly, senior standing counsel for the Revenue and....
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....n the erstwhile village or any fraction of the area constituting the municipality or cantonment board. However, it is vehemently submitted by Mr. Bansal, learned counsel for the assessee, that the aforenoted decisions of this court need reconsideration because the court has not taken into consideration a vital fact that during the relevant period, there was no notification under section 507 of the Delhi Municipal Corporation Act, 1957 (for short "the DMC Act"), declaring the rural area of the village as forming part of the urban area. The submission is that in the absence of such a notification, the village continues to be the rural area, beyond the control of the Municipal Corporation of Delhi and would, therefore, not fall within the a....
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....al areas or any portion thereof at rates lower than those at which such taxes, rates, fees and other charges are levied in the urban areas or exempt such areas or portion from any such tax, rate, fee or other charge; (c) the Corporation shall pay a Gaon Sabha- (i) an amount equal to the proceeds of the tax on profession, trades, callings and employments, as and when that tax is levied in the Gaon Sabha area, and (ii) an amount equal to such portion of the proceeds of the property taxes on lands and buildings in that area as may from time to time be determined by the Corporation, after deducting the cost of collection from such proceeds." The section merely provides that with the previous approval of the Government, the Corpor....
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....ipal Corporation to recover tax on its property, had submitted that the building constructed on the property was being used for agricultural purposes and was not liable to be taxed also because it was situated in a rural area. Repelling the said contention, it was held that rural areas of Delhi were also part of "Delhi" as contemplated by section 2(52) of the Delhi Municipal Corporation Act. In that view of the matter, we feel that section 507 of the Delhi Municipal Corporation Act has no bearing in so far as the applicability of section 2(14)(iii)(a) of the Act is concerned. The relevant portion of the section reads as under: "(iii) agricultural land in India, not being land situate- (a) in any area which is comprised within the j....