COMMISSIONER OF INCOME TAX Vs. LAL SINGH

JUDGEMENT

(1.) PASSED by the Tribunal, Delhi Bench 'D', New Delhi in ITA No. 5444/Del/2004 for the asst. yr. 1996 -97 raising the following substantial questions of law :

(2.) IN the present case, in the financial year 1995 -96 relevant to asst. yr. 1996 -97, late Smt. Pusha Devi wife of Jug Lal had sold her agricultural land situated in village Fazilpur, Jharsa for a sum of Rs. 89,75,000. After her death, notices under s. 148 were issued to her legal heirs. In response to that, a return was filed showing the net taxable income of Rs. 37,000. In the said return, the long -term capital gain was shown as nil. In order to claim that the agricultural land owned and sold by the assessee did not fall in the definition of "capital assets" as defined in s. 2(14)(iii) of the IT Act, 1961, the assessee produced a certificate from Tehsildar, Gurgaon to the effect that the land of the assessee was situated beyond 8 kms. from the Gurgaon municipal limits. The AO while not accepting the said report and while relying upon the report given by the Inspector, did not accept the assessee's contention of exemption under s. 54B and determined the capital gain to the tune of Rs. 86,65,900 in the assessment order. Against the said order, the assessee filed an appeal. The Commissioner of Income -tax (Appeals), Panchkula [hereinafter referred to as 'the CIT(A)'] vide its

(3.) THE Revenue filed the appeal against the said order, which has been dismissed by the Income -tax Appellate Tribunal