TMI Blog1992 (6) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... finding as to whether the land was agricultural in nature ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in directing the authority to apply the decision of the Bombay High Court in the case of Manubhai A. Sheth [1981] 128 ITR 87? 3. Whether, on the facts and in the circumstances of the case, the capital gain on the sale of lands by the assessee is exigible to income-tax as capital gains ? " The respondent is an assessee to income-tax. We are concerned with the assessment years 1980-81 and 1982-83 for which the relevant accounting periods ended on March 31, 1980, and March 31, 1982 respectively. During the previous years relevant to the two assessment years 1980-81 and 1982-83, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital gains. The said Bench decision was followed in subsequent cases, the latest decision being CIT v. Thomas Kurien [1992] 195 ITR 531 (Ker). This court dissented from the decision of the Bombay High Court in Manubhai A. Sheth's case [1981] 128 ITR 87 and held that the profits which arose out of the transfer of agricultural lands are exigible to capital gains tax. In the light of the Bench decisions of this court, we have to hold that, even if the lands sold within the corporation limits were agricultural lands, the sale will attract capital gains tax under the Incometax Act. The Tribunal directed the Income-tax Officer to find out whether the lands sold were agricultural or not. The officer was directed to apply Arundhati Balkrishna's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that the land transferred is agricultural land, since it is situate within the corporation/ municipal limits, the assessee cannot escape from the liability to pay tax on capital gains. We answer question No. 2 in the negative against the assessee and in favour of the Revenue. Question No. 3 : On this question, we are of the view that, if the capital gains arose to the assessee on the sale of lands by him, which are situate within the municipal or corporation limits, it is certainly exigible for the levy of the said capital gains tax. We answer question No. 3 in the affirmative, against the assessee and in favour of the Revenue. The references are answered as above. A copy of this judgment under the seal of this court and the signa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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