TaxTMI 
TaxTMI 
1994 (11) TMI 30
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....e of the two assessees, who are brothers, Sri L. S. Manickam and L. S. Saravanabhavan, the Tribunal referred the following common question for the assessment year 1974-75 for our opinion under section 256(1) of the Income-tax Act, 1961 : " Whether, on the facts and in the circumstances of the case and having regard to the provisions of section 2(14)(iii) of the Income-tax Act, 1961, the Appellate....
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....own and 97 cents situate in Annathanapatti village within eight kilometres from Salem municipal limit and so, all the lands are only capital assets coming within the ambit of section 2(14)(iii) of the Income-tax Act, 1961. The Income-tax Officer computed the capital gains on sale by the first assessee at Rs. 23,533 and in respect of the second assessee at Rs. 26,640. Both the assessees filed appea....
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....nation to section 2(1A) inserted by the Finance Act, 1989, with effect from April 1, 1970, the order of the Tribunal holding that the sale proceeds of agricultural lands within the municipal limits cannot be taxed under section 2(14)(iii) of the Act is incorrect. Learned standing counsel for the Department also submitted that in view of the fact that the amendment was brought with retrospective ef....
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....sale proceeds of agricultural lands are also taxable under section 2(14)(iii) of the Act. In the case of CIT v. Straw Products Ltd. [1966] 60 ITR 156 (SC), the Supreme Court held that it is the duty of the court to answer the reference in accordance with the amended law, unless the question referred by the Tribunal is not couched in terms of sufficient amplitude to cover an enquiry into the quest....