TMI Blog2011 (3) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... any word in the definition as assumed by learned counsel - Decided against the assessee - 276 of 2004 - - - Dated:- 1-3-2011 - MR.JUSTICE ADARSH KUMAR GOEL, MR.JUSTICE AJAY KUMAR MITTAL, JJ. Ms. Urvashi Dhugga, Senior Standing Counsel for the appellant. Ms. Radhika Suri, Advocate for the respondent. ADARSH KUMAR GOEL, J ( Oral) . 1. This order will dispose of ITAs No.276 of 2004, 54 of 2005 and 448 of 2009 as it is stated by the learned counsel for the revenue that facts and law involved in these appeals are common. However, the facts are taken from ITA NO.276 of 2004. 2. ITA No.276 of 2004 has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the State of Haryana, the same could not be treated to be capital asset when the land was not in that State. The Tribunal upheld the said view. 4. We have heard learned counsel for the parties. 5. Learned counsel for the revenue submits that the definition for the purpose of land being included in agricultural land or otherwise and thus being capital asset or otherwise has to consider whether the location of the land is within a municipality or within requisite distance of the municipality so that the urban land is treated as capital asset and is not excluded therefrom. In the present case, the land falls within the State of Punjab and is within the requisite distance from a specified municipality. Even if such municipality is out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. Vs. Kasi Naicker and others AIR 2003 Supreme Court 4156. 7. To appreciate the controversy, it will be appropriate to refer to relevant provisions of Section 2(14) of the Act :- 2(14) capital asset' means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include- (i) xx xx xx xx (ii) xx xx xx xx (iii) agricultural land in India, not being land situate- (a) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above-mentioned provision of the Income Tax Act, 1961 (43 of 1961). SCHEDULE Sr. No. Name of the State or Union Territory Name of the Municipality or Cantonment Board falling in the the State/Union Territory mentioned under column (2). Details of areas falling outside the local limits of Municipality or Cantonment Board, etc. mentioned under column(3). 1 2 3 4 9. xx HARYANA xx 44. Panchkula (Distt.Ambala) xx Areas upto a distance of 5 Kms. from the municipal limits in all directions Xx 18. PUNJAB 35. Rajpura Areas falling within (i) 1 Km. on either side of Rajpura-Sirhind Road up to a distance of 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 2(14), even if municipality and the land fall in different States, the land will continue to be urban land. If such land is excluded from the definition of 'capital asset', purpose of statutory scheme will not be achieved. 9. The judgments relied upon to submit that all words of a statute should be assigned meaning do not support the contention of the assessee, Including the land in dispute in 'capital asset' does not ignore any word in the definition as assumed by learned counsel. Speech of Finance Minister also does not help the assessee. The relevant extract thereof is as under:- Sub-clause (a) seeks to amend clause (14) of section 2 of the Income Tax Act which defines the term capital asset . The amendment seeks to br ..... X X X X Extracts X X X X X X X X Extracts X X X X
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