COMMISSIONER OF INCOME-TAX VS M.L. MAHAJAN
2004 P T D 2166
[255 I T R 272]
[Supreme Court of India]
Present: S. P. Bharucha, N. Santosh Hegde and Y. K. Sabharwal, JJ
COMMISSIONER OF INCOME‑TAX
Versus
M.L. MAHAJAN
Transferred Cases Nos. 19 to 24 of 1990, decided on /01/.
st
March, 2001. (Cases arising out of I. T. R. Nos. 123 of 125 of 1986 and 30 to 32 of 1987 on the file of the Punjab and Haryana High Court withdrawn to the Supreme Court by order, dated September 8, 1989, under Article 139A(1) of the Constitution of India in Transfer Petitions (Civil) Nos.322 :o 327 of 1989).
Income‑tax‑‑‑
‑‑‑‑Capital gains‑‑‑Agricultural land situate within municipal limits‑‑ Capital gains arising from sale‑‑‑Taxable‑‑‑Indian Income Tax Act, 1961, Ss.2(14)(iii)(a) & 45.
Held, that capital gains arising from the sale of agricultural land situate in the municipal limits of Pathankot were taxable under the Income‑tax Act.
Singhal Rakesh Kumar v. Union of India (2001) 247 ITR 150 (SC) applied.
T.L.V. Iyer, Senior Advocate (Rajiv Nada, Ajay Sharma, B.V.B. Balaram Das and P. Parameshwaran, Advocates, with him) for the Commissioner.
Ms. Geetanjali Mohan, Advocate for the Assessee.
ORDER
The question that Arises in these transferred cases reads thus:
"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the capital gain arising on the sale of agricultural land situated in the municipal limits of Pathankot is not taxable under the Income Tax Act, 1961?
It is not in dispute that the question must now be answered in the negative and in favour of the Revenue in the light of the judgment of this Court in Singhai Rakesh Kumar v. Union of India (2001) 247 ITR 150 and (2001) 1 SCC 364.
The references are allowed accordingly and the transferred cases disposed of.
No order as to costs.
M.B.A./1110/FCOrder accordingly.