COMMISSIONER OF INCOME TAX Vs. GEORGE VARGHESE

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following questions, in the above two cases, for the decision of this court :

(2.) WE heard counsel. A Bench of this court in CIT v. T. K. Sarala Devi [ 1987] 167 ITR 136 dissented from the decision of the Bombay High Court in Manubhai A. Sheth's case [1981] 128 ITR 87 and held that capital gains arising from the sale of agricultural lands can be brought to tax under the Income-tax Act. The decision in T. K. Sarala Devi's case [1987] 167 ITR 136 (Ker) was followed in subsequent decisions, I. T. R. No. 6 of 1985 dated June 13, 1989 (CIT v. Muledath Mohammed [1990] 186 ITR 498 (Ker)), I. T. R. No. 37 of 1985 dated June 13, 1989 and (CIT v. A. S. Iqbal [1990] 186 ITR 499 (Ker)) and I. T. R. No. 121 of 1984 dated July 5, 1989 (CIT v. Glory Paul [ 1990] 186 ITR 496 (Ker)).

(3.) A copy of this judgment under the seal of this court and the signature of the Registrar shall be forwarded to the Income-tax. Appellate Tribunal, Cochin Bench.