1990 (6) TMI 66

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..... llate Tribunal has referred the following questions, in the above two cases, for the decision of this court : "Income -tax Reference No. 61 of 1987 : Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and has jurisdiction to hold that the land in question is not a capital asset within the meaning of the definition and hence not liable to capital gains tax .....

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..... can be imposed on capital gains which arose out of the sale of agricultural property even though the property is situated in a notified area. It is thereafter at the instance of the Revenue that, the questions of law, formulated hereinabove, have been referred for the decision of this court. We heard counsel. A Bench of this court in CIT v. T. K. Sarala Devi [1987] 167 ITR 136 dissented from the .....

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..... endment made in the Act by section 3 of the Finance Act, 1989. The amendment in the statute has been made with retrospective effect which makes it clear that capital gains tax is exigible on the sale of agricultural lands situate within the notified areas. In the light of the above, the Appellate Tribunal was in error in holding to the contrary. It should have been held that if there is capital .....

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