COMMISSIONER OF INCOME TAX Vs. ANJANA SEHGAL

JUDGEMENT

(1.) This order will dispose of I.T.As. Nos. 276 of 2004, 54 of 2005 and 448 of 2009 as it is stated by the learned counsel for the Revenue that the facts and law involved in these appeals are common. However, the facts are taken from I.T.A. No. 276 of 2004. I.T.A. No. 276 of 2004 has been preferred by the Revenue under section 260A of the Income-tax Act, 1961 (hereinafter referred to as "the Act") against order dated April 19, 2004, passed by the Income-tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh, in I.T.A. No. 135/Chandi/2001, for the assessment year 1997-98, claiming the following substantial questions of law:

(2.) The assessee sold agricultural land and was sought to be taxed for the capital gains on the ground that agricultural land in question was covered by the definition of "capital asset" under section 2(14) of the Act. The land was situated within 8 kilometers of the municipal limits of Panchkula and was thus covered by the notification dated January 6, 1994, contemplated under section 2(14)(iii)(b). On appeal, the Commissioner of Income-tax (Appeals) deleted the addition holding that the land in question was in the State of Punjab while the Panchkula municipality was in the State of Haryana and even if the land was within the specified distance of municipality in the State of Haryana, the same could not be treated to be capital asset when the land was not in that State. The Tribunal upheld the said view.

(3.) We have heard learned counsel for the parties.