9911796707
TMI Blog1969 (5) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... Zamindari Ltd., which had owned certain agricultural lands in the District of Ranchi, settled a portion of these lands with the assessee-company. It had been recited in the said deed that the said M/s. Ranchi Zamindari Ltd. had extensive landed property in the District of Ranchi and since the said company was long desirous of developing the various resources of the said property for the purpose of increasing agricultural production and whereas the assessee had expressed a desire to take lease of the lands for the afore said purpose, the said M/s. Ranchi Zamindari Ltd. settled with the said Chhotanagpur General Trading Co. Ltd., being the assessee herein, lands fully described in the deed " in Raiyati " for the purposes mentioned in the dee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was a deed of lease and the assessee's interest in the land was not ownership in the land but only the leasehold rights therein. He was, therefore, of the opinion that these amounts were liable to be taxed under section 12B of the Indian Income-tax Act, 1922. He, accordingly, upheld the order of the Income-tax Officer. There was a further appeal before the Tribunal. The Tribunal held that the amounts realised from the transfers were not assessable under section 12B of the Indian Income-tax Act, 1922. Under section 66(1) of the Indian Income-tax Act, 1922, the following question has been referred to this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the transfer by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was holding had been transferred by the assessee out of which the surplus amounts have been realised, which is the subject-matter of this reference. Therefore, under sub-clause (iii) of section 2(4A) of the Income-tax Act, 1922, this land would be excluded from the definition of " capital asset ". In view of the nature of the lease and the interest of the assessee in the said lease as indicated hereinbefore we are of the opinion that the transfer of these interests held by the assessee under the lease would amount to transfer of land from which the income derived is agricultural income and in that view of the matter it would not be a transfer or sale or relinquishment of any capital asset as defined in section 2(4A) of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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