NAURATA RAM KARTA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The appellant, challenges order dated 29.10.1998 passed by the Income Tax Appellate Tribunal, dismissing his appeal with respect to assessment year 1993-94.

(2.) Counsel for the appellant, in essence, submits that as compensation was received in the previous year relevant to the assessment year 1991-92 was duly disclosed in the return of income and was considered by the Assessing Officer, in assessment year 1991- 92, the Assessing Officer while considering the appellant's income in assessment year 1993-94, had no jurisdiction to impose tax on capital gains by construing that compensation had been received in the year previous to the assessment year 1993-94. Counsel for the appellant refers to Section 45(5)(b) of the Income Tax Act, 1961 (in short the Act), in support of his argument that as capital gain is payable in the year of receipt and, as admittedly, compensation was received in the previous year relevant to the assessment year 1991-92, the Assessing Officer, exercising power in the year 1993-94, had no jurisdiction to levy tax on this capital gain.

(3.) Counsel for the revenue submits that the questions of law framed by counsel for the appellant do not arise for adjudication as the appellant had placed the amount of compensation received, in the Capital Gains Scheme, 1988 and by virtue of Section 54-B of the Act, was required to purchase agricultural land within two years of receipt of compensation. The appellant having failed to purchase agricultural land within two years, the amount became exigible to capital gains tax in the year 1993-94. The orders passed by the Assessing Officer, Commissioner of Income Tax (Appeals), duly affirmed by the Income Tax Appellate Tribunal, therefore, do not call for any interference.