COMMISSIONER OF INCOME TAX Vs. SATINDER PAL SINGH

JUDGEMENT

(1.) This order shall dispose of two appeals bearing IT Appeal Nos. 646 and 647 of 2009 as the issue raised in both the appeals is the same.

(2.) The Revenue has filed the instant appeals under Section 260A of the IT Act, 1961 (for brevity 'the Act') in respect of asst. yr. 2001-02 challenging order dt. 31st March, 2009 passed by the Income-tax Appellate Tribunal, Chandigarh (for brevity 'the Tribunal) in ITA No. 641/Chd/2004 along with cross-objection No. 38/Chd/2006. The Tribunal after dealing with various aspects of the matter has disposed of the appeal filed by the Revenue along with the cross-objection of the assessee-respondent. In respect of the question concerning distance of the agricultural land from the municipal limits of city of Khanna, the Tribunal has decided the issue holding that distance of 2 kms. from the municipal limits of city of Khanna has to be reckoned for the purposes of Section 2(14)(iii) of the Act by measuring the same as per the road distance and not as per straight line distance on a horizontal plane or as per crow's flight. After holding in the aforesaid manner, the Tribunal has remanded the matter to the AO to ascertain as to whether the agricultural land in question falls within the definition of capital assets under Section 2(14) of the Act by considering the distance in terms of the approach by road. The Revenue has claimed that following three questions of law would arise for determination of this Court:

(3.) During the course of hearing, we have found that question Nos. (2) and (3) are pure questions of fact and would not result into any substantive questions of law which are required to be adjudicated by this Court. Accordingly, we proceed to consider question No. 1.