9911796707
TMI Blog1995 (11) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... agricultural purposes does not come within the definition of capital asset under section 2(14)(iii) of the Income-tax Act, 1961 ? " Briefly stated the facts of the case are that the assessee owned lands situated in village Bhamori, Tehsil Indore, admeasuring 23.12 acres. The Indore City Improvement Trust, vide notification under section 68 of the Madhya Pradesh Town Improvement Trusts Act, 1961, proposed to acquire the aforesaid lands. The lands were acquired with effect from November 9, 1973. The possession of the lands was taken over on March 25, 1975. Later, on January 14, 1976, the trust informed the assessee that it was prepared to pay the assessee the sum of Rs. 1,61,840 as compensation for the acquisition. The assessee termed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d accordingly filed the application seeking statement of the case and reference of the question of law. The Tribunal then stated the case and referred the question of law as noted above. We have heard Shri D. D. Vyas, learned counsel for the applicant. The non-applicant has died during the pendency of the appeal. Shri P. M. Choudhary, learned counsel, however, on instructions from one of the legal representatives of the deceased/non-applicant/assessee appeared only to inform that pursuant to the order of remand by the Tribunal, the final order is passed by the appropriate authority and after enquiry the lands in question have been held to be agricultural lands. It is noticed that the Revenue took no steps to bring the legal representative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral purposes does not come within the definition of capital asset under section 2(14)(iii) of the Act. There are two additional factors noticeable herein : (a) The non-applicant has died but the legal representatives have not been impleaded to enable a full-fledged hearing of the reference application. (b) The final order pursuant to the order of remand passed by the Tribunal has been passed by the appropriate authority and the Revenue has not challenged the final order. In view of the aforesaid position of law vis-a-vis facts as have been proved, we answer the question in the affirmative, i.e., against the Revenue and in favour of the assessee. The question is answered accordingly. A copy of this order shall be transmitted to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
