9911796707
TMI Blog2003 (1) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment of the court was delivered by R.K. ABICHANDANI J.-The Income-tax Appellate Tribunal, Ahmedabad Bench "B", has referred the following question for the opinion of this court under section 256(l) of the Income-tax Act, 1961. "Whether in law and on facts Circular No. 88, dated August 1, 1969, issued by the Central Board of Direct Taxes but subsequently withdrawn on September 23, 1971, was applicable and the cost of acquisition had to be determined on the basis of the value as determined on the date of conversion of agricultural land into non-agricultural land, i.e., when the land became a capital asset?" The matter pertains to the assessment year 1971-72. The assessee is an individual. In the assessment proceedings under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, however, held that the circular issued by the Central Board of Direct Taxes was of a benevolent nature and applied in the case of the assessee in respect of the assessment year 1971-72, because it was in force from the date of the assessment year, though later on it came to be withdrawn on September 23, 1971. Though the question which is referred mentions number of the circular as "88", dated August 1, 1969, these orders are in Instruction No. 90 which was issued on August 1, 1969, a copy of which is placed on record before us. Learned counsel for the Revenue has, during the proceedings, at our instance, after frantic efforts been able to trace out these relevant instructions which are the subject matter of the proceedings. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich the agricultural land had been converted into a nonagricultural land. Such cost of acquisition may reasonably be taken, in accordance with the principles enunciated by the Supreme Court in the case of CIT v. Bai Shirinbai K. Kooka [1962] 46 ITR 86, to be the market price of the land at the point of time when the agricultural land is converted into non-agricultural land. 3. The cases of the type in question are to be decided under the provisions of section 48(ii) as clarified above and sections 49 and 55(2) would not apply." There is no dispute about the fact that the above instructions were in force at the relevant time. Therefore, subsequent withdrawal of these instructions will not affect their operation. These instructions have, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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