COMMISSIONER OF INCOME TAX Vs. SURJEET KAUR

JUDGEMENT

(1.) IN this appeal, presented under Section 260A of the Income Tax Act (for short the Act), the only question that arises for consideration is as to whether the land sold by the respondent in the year 1991 attracts the capital gains tax, under the Act.

(2.) THE respondent owned Acs.16.00 of land in Mallapur Revenue Village of Uppal Mandal, Ranga Reddy District. She sold that land through five sale deeds, between 12.06.1991 and 09.02.1992 in favour of various individuals. In the returns filed for the assessment year 1992 -93, the transactions were reflected. The Assessing Authority took the view that the respondent is under obligation to pay capital gains under Section 45 of the Act. The basis for this was that the land was treated as capital asset and the sale proceeds thereof were treated as capital gains.

(3.) SRI J.V.Prasad, learned Standing Counsel for the appellant, submits that the land in question was undisputedly within the limits of Kapra Municipality and thereby, it deserve to be treated as capital asset. He places reliance upon Section 2 (14) (iii)(a) of the Act. He further submits that even if one takes into account, the factor of population, mentioned in the said provision, the land would become a capital asset and that the view taken by the Tribunal cannot be sustained in law.