1997 (9) TMI 45

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....--At the instance of the Revenue, Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for short "the Tribunal"), has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in upholding the decision of the Appellate Assistant Commissioner that capital gains arising ....

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....il 1, 1970, has brought about a change in the law and after that date the sale made of certain specified agricultural lands situated in the municipal limits would attract capital gains. It was held as under (reproduced from the headnote) : "Compulsory acquisition of agricultural land under any law for the time being in force is a transfer within the meaning of section 2(47) of the Income-tax Ac....

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....charges the resulting capital gain by including it as income. Although land is the source of income, income is derived not by the use of land, but by the sale of the land, that is, by conversion of the land into cash. The resultant income is not agricultural income. The Explanation inserted in section 2(1A) by the Finance Act, 1989, with effect from April 1, 1970, makes the position clear when it ....