COMMISSIONER OF INCOME TAX Vs. MULEDATH MOHAMMED

JUDGEMENT

(1.) AT the instance of the Revenue, the Income -taxAppellate 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 Tribunal held that the assessee cannot be assessed on the capital gains which accrued or which arose out of the transfer of agricultural lands. Reliance was placed on the decision of the Bombay High Court in Manubhai A. Sheth v. N. D. Nirgudkar, Second ITO : [1981]128ITR87(Bom) . It, is, thereafter, at the instance of the Revenue that the question of law, formulated hereinabove, has been formulated for the decision of this court.

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