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Issues Involved:
1. Taxability of income on account of capital gain from the transfer of agricultural land. 2. Determination of the date of transfer of agricultural land. 3. Applicability of notifications regarding the definition of "capital assets." 4. Reopening of block assessment under section 148. 5. Taxability of the value of plots received in lieu of agricultural land under the Wealth-tax Act. 6. Determination of the value of plots for Wealth-tax purposes. Issue-wise Detailed Analysis: 1. Taxability of Income on Account of Capital Gain from the Transfer of Agricultural Land: The primary issue was whether the capital gain arising from the transfer of agricultural land was taxable. The assessee argued that the land was agricultural and situated beyond the specified distance from the municipal limits, thus exempt from capital gains tax under section 2(14) of the Income-tax Act. The CIT (Appeals) upheld the assessee's contention, stating that the land was not a "capital asset" as per section 2(14) and the notification dated 6-2-1973 was applicable. The ITAT also considered whether the land fell within the definition of "capital assets" and concluded that the land was transferred on 9-2-1993, making the 1973 notification applicable and exempting the land from capital gains tax. 2. Determination of the Date of Transfer of Agricultural Land: The date of transfer was crucial for determining the applicability of the notifications. The assessee claimed the transfer occurred on 9-2-1993, supported by a civil court decree and mutation records. The CIT (Appeals) initially disagreed, stating that the actual transfer occurred on 27-6-1996 when the assessee received additional payment. However, the ITAT found that the transfer occurred on 9-2-1993, supported by the court decree and mutation records, thus applying the 1973 notification and exempting the land from capital gains tax. 3. Applicability of Notifications Regarding the Definition of "Capital Assets": The applicability of the 1973 and 1994 notifications was debated. The 1973 notification exempted land situated beyond 2 kms from the national highway from being considered a "capital asset." The 1994 notification extended this limit to 6 kms. The ITAT concluded that the 1973 notification was applicable as the transfer occurred on 9-2-1993, and the land was beyond 2 kms from the national highway, thus not a "capital asset." 4. Reopening of Block Assessment Under Section 148: The CIT (Appeals) quashed the reopening of the block assessment under section 148, following the Gujarat High Court decision in Cargo Clearing Agency v. Jt. CIT and the ITAT decision in Western India Bakers (P.) Ltd. v. Dy. CIT. The ITAT upheld this decision, stating that the block assessment could not be reopened under section 148 as Chapter XIV-B's special provisions override the general provisions of the Act. 5. Taxability of the Value of Plots Received in Lieu of Agricultural Land Under the Wealth-tax Act: The issue was whether the value of plots received by the assessee in lieu of agricultural land was taxable under the Wealth-tax Act for the assessment year 1998-99. The CIT (Appeals) held that the plots were taxable, but the ITAT found that the plots were allotted on 16-1-1999, after the assessment year 1998-99, and thus could not be taxed for that year. 6. Determination of the Value of Plots for Wealth-tax Purposes: The assessee challenged the valuation of the plots based on a bank's valuation report. The ITAT agreed that the valuation should follow the procedure in section 7 and Schedule III of the Wealth-tax Act, not solely based on the bank's report. The issue was remanded to the Assessing Officer for re-adjudication following the proper valuation procedure. Summary of Results: 1. IT(SS) A. No. 25/Delhi/09: The appeal of the assessee is partly allowed. 2. IT(SS) A. No. 26/Delhi/09: The appeal of the revenue is dismissed. 3. ITA No. 576/Delhi/09: The appeal of the assessee is allowed. 4. ITA No. 591/Delhi/09: The appeal of the revenue is dismissed. 5. WTA Nos. 01, 02, and 04/Delhi/09 for assessment year 1998-99: All these appeals of the assessee are allowed. 6. WTA Nos. 03 and 05/Delhi/09: Both these appeals filed by the assessee are allowed for statistical purposes.
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