1990 (9) TMI 50

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.... the instance of the Revenue, the Income tax Appellate Tribunal (the Tribunal) has referred the following question of law for the decision of this court in the above-referred cases : "Whether, on the facts and in the circumstances of the case, the consideration received on the sale of agricultural lands is exigible to income-tax on capital gains ?" The respondent is an assessee to income-tax....

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....nds is possible even though the land was situated within the municipal limits. Since, on the facts of this case, it was agreed that the properties sold by the assessee was agricultural lands, following the decision of the Bombay High Court aforesaid, the Tribunal held that no capital gains on the sale of agricultural lands arose for consideration. It is thereafter, at the instance of the Revenue, ....

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....he Income-tax Act. Moreover, the amendment made by section 3 of the Finance Act, 1989, to section 2(14) of the Income-tax Act with retrospective effect, will show that tax on capital gains is exigible on the sale of agricultural lands. In the light of the above Bench decisions, we are of the view that the Appellate Tribunal was in error in holding that the consideration received on the sale of ....