JAYRAJ MADEPPA KADADI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is the assessee's reference. It raises the following two questions :

(2.) THE Land Revenue authorities have sanctioned permission to change the character of the land for non agricultural purposes ; however, the chargeability of non agricultural cess commences only from the date of use of such land for non agricultural purposes. The plots will remain as agricultural land till the change over of such land for non agricultural use.

(3.) THE ITO did not impose any capital gains tax on the sale of the said land for the asst. yrs. 1967 68, 1968 69 and 1969 70. His successor reopened the assessments for these assessment years under S. 147 of the IT Act, 1961, on the ground that income which ought to have been brought to capital gains tax had escaped assessment. The assessee's objection to such reopening was rejected by the Income tax Officer and, in appeal, by the AAC.