COMMISSIONER OF INCOME TAX Vs. POORANCHAND

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated May 6, 1983, in respect of the assessment year 1972-73 under section 256(1) of the Income-tax Act, 1961 :

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was right in relying on a decision of the Honble Bombay High Court in Manubhai A. Sheth v. N. D. Nirgudkdar, 1981 128 ITR 87(Bom) and thereby cancelling the penalty of Rs. 17,580 imposed under section 271(1)(c) ;

(3.) EXPLANATION. - For the removal of doubts, it is hereby declared that revenue derived from land shall not include and shall be deemed never to have included any income arising from the transfer of any land referred to in item (a) or item (b) of sub-clause (iii) of clause (14) of this section.;