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TMI Blog1984 (7) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(14)(iii) of the Income-tax Act, 1961, to fall outside the net of section 45' were valid and justified in law ? 2. Was the Appellate Tribunal justified in law in holding that the value of the plot of 5,3380 acres of land of the assessee compulsorily acquired by the Government can be assessed to capital gains ? " The year of assessment is 1964-65, the accounting period being the period ending with December 31, 1963. The facts relevant for considering the points arising in the case lie in a narrow compass. The assessee is company now under liquidation. On March 14, 1947, it purchased 5 acres and 5 cents of dry lands for a sum of Rs. 1,70,000. The property in question is situated by the side of the ship building yard and very near the Ven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he compensation was dismissed. On July 30, 1971, the Income-tax Officer issued a notice under section 148 of the Income-tax Act, calling upon the assessee to file the return of its income for the assessment year 1964-65. This notice disclosed that income said to have escaped assessment represented the " Capital gains " arising from the acquisition of the aforesaid property of the assessee. The assessee filed the return of income declaring a total loss of Rs. 1,92,233. In the return, the assessee had shown 50 cents of the land acquired as non-agricultural land and the remaining land as agricultural land. For the purpose of computing the " capital gains ", the assessee thus had taken into account only the value of about 50 cents of land and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e us. The learned counsel for the assessee submitted that inasmuch as there were 242 coconut trees and 14 areca trees in addition to trees like mango trees, tamarind trees etc., on the land, the authorities concerned should have declared that the land in question was agricultural land irrespective of the fact whether the assignee at any time had an intention to use the land for agricultural purposes or whether he purchased the land with the intention of using it for agricultural purposes. In support of this plea, he referred to a decision of the Supreme Court in CWT v.. Officer-in-Charge, Court of Wards, Paigah [1976] 105 ITK 133 and a decision of this court in CIT v. K. Ananthan Pillai [1974] 94 ITR 122. The above submission of the cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is stated above, it becomes abundantly clear and convincing that the acquired lands were purely non-agricultural and that they would fall under 'capital assets' for the purpose of income-tax. " The Appellate Assistant Commissioner in his order (annexure F) has found thus: " Therefore, I am convinced that when the appellant purchased the land, he had intended to utilise it only as a business asset. The further development in connection with this land also indicates that when the land was acquired by the Government, the appellant was not carrying on any agricultural operations and that land was, in fact, not agricultural land at the time. The Income-tax Officer was, therefore, justified in computing the capital gains on the sale of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he various relevant factors, the general nature or character of the land, is such that it can be regarded as agricultural land." (Emphasis supplied). The assessee has not challenged the above findings and hence is bound by them. The form of the first question itself indicates that the assessee has accepted the findings of the Tribunal that the land in question is not agricultural land within the meaning of section 2(14)(iii) of the Act. To consider the argument the counsel for the assessee has now raised before us, we should go behind the above findings of the Tribunal. The High Court while exercising the advisory jurisdiction has no authority to go behind the findings of the Tribunal or to question the statements of fact made by the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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