HINDUSTAN INDUSTRIAL Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) THE substantial question of law which arises in this appeal is:-"whether the order passed by the Income Tax Appellate Tribunal holding that the land acquired from the ownership of the appellant was not agricultural land, is perverse?"

(2.) THE issue which arose before the Income Tax Appellate Tribunal was with regard to the treatment to be given to the land owned by the assessee company with the future intention of setting up an industry thereon. The said land was acquired under the Land Acquisition Act, 1894. The Assessing officer charged capital gains thereon to the extent of Rs 18,57,9327 -. The assessee has throughout maintained that the land in question was land falling within the definition of agricultural land given in Section 2 (14) (iii)of the Income Tax Act, 1961 (hereinafter referred to as the said Act ). It was therefore, contended by the assessee that no capital gains could be charged in respect of the land.

(3.) THE land in question which is situated in Tugalpur, Tehsil of Greater noida, was purchased by the assessee company on 15. 03. 1989. Shortly thereafter it was acquired by the Greater Noida Authority and compensation was paid to the assessee company. It may be relevant to note that the Award was passed by the District Collector (Land Acquisition), Greater Noida, U. P. on 01. 04. 1992 and that the Award clearly established that the land in question was agricultural land.