2011 (2) TMI 588

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..... bmitted that agricultural land was not covered by definition of capital asset under section 2(14) of the Act and thus compensation for acquisition thereof was not capital gain taxable under the Act. Reliance has been placed on judgment of this Court in Risal Singh v. Union of India [2010 -TMI - 75720 - PUNJAB AND HARYANA HIGH COURT] - It is submitted if there was no taxability the appellant could .....

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..... 0-2007 passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar in ITA No. 87/ASR./2004, for the assessment year 2000-01, claiming following substantial questions of law :-- "(i) Whether the ld. ITAT Amritsar was right in law holding that the appellant came within the definition of 'person' as defined in section 194L of the Income-tax Act? (ii) Whether the ld. ITAT Amritsar was ri .....

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..... pellant, could not be admitted in proceedings before it? '' 3. The assessee is an authority acting as a Collector under the provisions of the Punjab Regional and Town Planning and Development Act, 1995. Under the said Act agricultural land was acquired for setting up an urban estate at Kapurthala and compensation was paid to the land owners. However, no tax at source was deducted under section 19 .....

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..... cquired for setting up an urban estate at Kapurthala and that the land had to be a part of Kapurthala Town; and that accordingly, it was a capital asset and the compensation thereon represented income on which Income-tax was deductible. The assessee has not been able to refute these findings of fact recorded by the learned CIT(A), with which we entirely concur while rejected this contention of the .....

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..... ounsel for the revenue has not been able to dispute the legal position that unless the acquired land falls under section 2(14), there is no liability to deduct tax at source while disbursing compensation for acquisition of land as held by this Court in Risal Singh's case (supra). 7. In view of above questions raised have to be answered in favour of the appellant. The appeal is allowed, the impugn .....

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