COMMISSIONER OF INCOME TAX Vs. A S IQBAL

JUDGEMENT

(1.) AT the instance of the Revenue, the Tribunal has referred the following question of law for the decision of this Court : "Whether, on the facts and in the circumstances of the case, was the Tribunal right in law in holding that no tax on capital gains was leviable on the sale of the land in question?"

(2.) THE respondents are assessees to income-tax. We are concerned with the asst. yr. 1974-75. The Tribunal upheld the plea of the assessees that no capital gains tax is leviable on the sale of agricultural land. Thereafter, at the instance of the Revenue, the question of law formulated hereinabove, has been referred for the decision of this Court.

(3.) IN the light of the above Bench decision of this Court, we are of the view that the decision of the Tribunal is erroneous in law. We, therefore, answer the question referred to us in the negative, in favour of the Revenue and against the assessee.