CIT Vs. K. LEELAVATHY

JUDGEMENT

(1.) THE appeal under section 260A of the Income-tax Act, 1961 (for short, "the Act") by the Revenue, seeking to raise the following substantial questions of law for our examination in this appeal:-

(2.) AS questions that arise from out of the order of the Income tax Appellate Tribunal, Bangalore Bench in I. T. A. No. 997/Bang/2010, which, by that order, dismissed the appeal of the Revenue against the order passed by the Appellate Commissioner holding that there is no need to interfere with the finding of the Appellate Commissioner that the sale transaction dated April 7, 2004, effected by the respondent-assessee in favour of some third parties in respect of an extent of 3 acres, 38 guntas in Survey No. 75 and 3 acres in Survey No. 77 of Seshahalli village, Bangalore rural district, put together for sale consideration of Rs. 50 lakhs, is not a transaction involving transfer of a capital asset and, therefore, no need to bring the income referable to the capital gains part of the transfer of the asset.

(3.) IT is also sought to be submitted that even independent of the question as to whether the land had been converted for a non-agricultural purpose or had retained its agricultural character, but as it was within a distance of 8 kms. from the urban agglomeration of Bangalore city it is inevitably a capital asset within the meaning of section 2(14) of the Act and, therefore, the tax liability as had been determined by the Assessing Officer should not have been altered or reduced by the appellate authorities.