COMMISSIONER OF INCOME-TAX VS KALAWATI
2001 P T D 1946
[246 I T R 4651
[Supreme Court of India]
Present: S. P. Bharucha, M.B. Shah and Shivaraj V. Patil, JJ
COMMISSIONER OF INCOME‑TAX
Versus
KALAWATI
C. A. No.3430 of 2000, decided on 12/05/2000.
(Appeal by special leave from the judgment and order, dated November 19, 1991 of the Bombay High Court in I.T.A. No.3 of 1989).
Income‑tax‑‑‑--
‑‑‑‑Reference‑‑‑Agricultural income‑‑‑Capital gains‑‑‑Profits from sale of agricultural lands‑‑‑Law applicable‑‑‑Effect of Explanation to S.2(1‑A) with retrospective effect from 1‑4‑1970‑‑‑Whether income arising from transfer of agricultural lands can ,be treated as agricultural income ‑.‑‑Question of law‑‑ Indian Income Tax Act. 1961, Ss.2 & 256.
Held, that the decision of the Supreme Court in Union of India v. Muthyarn Reddy (1999) 240 ITR 341 being applicable and in favour of the appellant, the order of the High Court was set aside; and the Tribunal was to refer the question whether the Tribunal was right in holding that the profits arising out of sale of agricultural, lands could hot be subjected to income- tax.
Union of India v. S. Muthyam' Reddy (1999) 240 ITR 341 (SC) rel.
W. A. Quadri and Sushma Suri Pr, Appellant.
JUDGMENT
Leave granted.
The notice on the special leave petition stated that the matter might be disposed of at this stage in the light of the judgment of this Court delivered on October 1, 1999, in Union of India v. S. Muthyam. Reddy (Civil Appeal No.762 of 1997)‑‑‑ (1999) 240 ITR 341.
The respondent has been served but has not put in an appearance.
The judgment aforesaid being applicable and in favour of the appellant, the civil appeal is allowed and the judgment and order under appeal is set aside.
The question that the appellant sought reference of, namely, "whether, in the facts and in the circumstances of the case, the learned Income‑tax Appellate Tribunal was correct in holding that the profits arising out of sale of agricultural land could not be subjected to income‑tax", shall now be referred by the Tribunal to the High Court to be decided in the light of the judgment in S. Muthyam Reddy's case (1999) 240 I T R 341 (SC).
No order as to costs.
M.B.A./503/FCOrder accordingly.