9911796707
TMI Blog1987 (8) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... land is agricultural income within the meaning of section 2(1) of the Income-tax Act and is not liable to tax as capital gains under the provisions of the Income-tax Act, 1961 ?" The material facts giving rise to this reference, briefly, are as follows : The assessee is a registered partnership firm. The assessment year in question is 1977-78 for which the accounting year ended on October 31, 1976. During the relevant accounting year, the assessee made a profit of Rs. 97,988 by selling a parcel of agricultural land situated within the limits of the Indore Municipal Corporation. That land was purchased by the assessee in the year 1964 with a view to develop it but the assessee had neither developed it nor carried on any agricultural op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or receiver of rent-in-kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in paragraph (ii) of this sub-clause (c) any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the receiver of rent-in-kind, of any land with respect to which, or the produce of which, any process mentioned in paragraphs (ii) and (iii) of sub-clause (b) is carried on: Provided that (i) the building is on or in the immediate vicinity of the land and is a building which the-receiver of the rent or revenue or the cultivator, or the receiver of rent-in-kind, by reason of his connection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arising from the sale of land situated in India and used for agricultural purposes, can or cannot be held to be agricultural income within the meaning of section 2(1) of the Act, there are conflicting decisions. In Manubhai A. Sheth v. N. D. Nirgudkar, 2nd ITO [1981] 128 ITR 87, the Bombay High Court has taken the view that capital gains arising from the sale of land used for agricultural purposes would be revenue derived from such land and, therefore, agricultural income. In D. L. F. Housing and Construction (P.) Ltd. v. CIT [1983] 141 ITR 806 (Delhi), the Delhi High Court has, however, taken the view that if the corpus itself is disposed of by way of sale, it cannot be held by any stretch of reasoning that the sale proceeds would be " in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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