COMMISSIONER OF INCOME TAX Vs. PYARE LAL

JUDGEMENT

(1.) THE Tribunal has, under S. 256(1) of the IT Act, 1961, and at the instance of the Revenue referred for the opinion of the High Court the following two questions of law, relating to the asst. year 1974 - 75 :

(2.) THE assessee is an HUF having small income assessable as income from house property and by way of interest. During the previous year relevant to the asst. year 1974 -75 certain land belonging to the assessee stood transferred as a result of acquisition by the Government. The land was agricultural and situated in village Nangal Dewat. The compensation received by the assessee from the Land Acquisition Collector was taken by the ITO into account for determining the capital gains. The assessee went in appeal. The CIT(A) set aside the order of the ITO and directed him to exclude the income computed under the head "Capital gains".

(3.) THE Revenue preferred an appeal to the Tribunal which has been dismissed.