COMMISSIONER OF INCOME TAX Vs. RAJENDRAPPA B S

JUDGEMENT

(1.) IN these references made under s. 256(1) of the IT Act, 1961 (Act), the Tribunal, Bangalore Bench, Bangalore (" Tribunal "), at the instance of the Revenue has referred the following common question of law for the opinion of this Court but in respect of different assessees.

(2.) IN order to appreciate the common question referred to us, it is necessary to notice the facts as found by the Tribunal.

(3.) SRI K. SRInivasan, learned senior standing counsel for the IT Department, appearing for the Revenue, contends that the Tribunal and the AAC were in error in treating that s. 2(14)(iii) of the Act which subjected agricultural lands referred to there in to capital gains tax was inoperative in the State of Karnataka and that, in any event, this Court, on upholding its validity on March 24, 1986, in W.P. No. 4309 of 1981 (B. S. Jayachandra vs. ITO (1986) 54 CTR (Kar) 342:(1986) 161 ITR 190 (Kar)), the assessees were clearly chargeable to capital gains tax under the Act.