2001 PLP 1131 (PTD)
N/A
| Citation | 2001 PLP 1131 (PTD) |
| Forum / Court | 243 I T R 853 |
| Bench Members | J. S. Verma and S. P. Kurdukar, JJ |
| Parties | N/A |
| Primary Law | Income‑tax‑‑‑ |
Q1: What are the key laws and sections cited in 2001 PLP 1131 (PTD)?
This judgment primarily cites: Income‑tax‑‑‑ as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2001 PLP 1131 (PTD)?
The case was heard and decided by the 243 I T R 853 bench comprising: J. S. Verma and S. P. Kurdukar, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2001 PLP 1131 (PTD) (N/A). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- B. S. Ahuja and B. Krishna Prasad, Advocates for Appellant.
- A. V. Rangam and A. Ranganadhan, Advocates for Respondent.
Headnotes / Summary
(Appeal by special leave from the judgment and order, dated January 17, 1989 of the Andhra Pradesh High Court in Income‑tax Case No. 74 of 1989). ‑‑‑‑Reference‑‑‑Capital gains‑‑‑Transfer of agricultural lands‑‑‑Law applicable‑‑‑Effect of amendment of S.2(1A) with retrospective effect from 1‑4‑1970‑‑‑Question whether capital gains could be levied on gains arising on transfer of agricultural land‑‑‑Question of law ‑‑‑Indian Income Tax Act, 1961, SS. 2(1A), 45 &
256. Held, that the High Court rejected the application to direct reference in view of the decisions of Manubhai A. Sheth v. N.D. Nirgudkar, Second I.T.O. (1981) 128 ITR 87 (Bom.) and J. Raghottania Reddy v. I.T.O. (1988) 169 ITR 174 (AP). However, an Explanation had been inserted in clause (IA) of section 2 of the Income Tax Act, 1961, by the Finance Act, 1989, with retrospective effect from April 1, 1970, to overcome the effect of those decisions. This being so, the question whether the Income‑tax Appellate Tribunal was right in law in upholding the order of the Commissioner of Income‑tax (Appeals) directing the Income‑tax Officer to exclude the capital gains arising from the transfer of agricultural lands from the assessment had to be referred to the High Court. Manubhai A. Sheth v. N.D. Nirgudkar, Second I.T.O. (1981) 128 ITR 87 (Bom.) and J. Raghottama Reddy v. I.T.O. (1988) 169 ITR .174 (AP) ref.
Judgment & Decree
Held, that the High Court rejected the application to direct reference in view of the decisions of Manubhai A. Sheth v. N.D. Nirgudkar, Second I.T.O. (1981) 128 ITR 87 (Bom.) and J. Raghottania Reddy v. I.T.O. (1988) 169 ITR 174 (AP). However, an Explanation had been inserted in clause (IA) of section 2 of the Income Tax Act, 1961, by the Finance Act, 1989, with retrospective effect from April 1, 1970, to overcome the effect of those decisions. This being so, the question whether the Income‑tax Appellate Tribunal was right in law in upholding the order of the Commissioner of Income‑tax (Appeals) directing the Income‑tax Officer to exclude the capital gains arising from the transfer of agricultural lands from the assessment had to be referred to the High Court. Manubhai A. Sheth v. N.D. Nirgudkar, Second I.T.O. (1981) 128 ITR 87 (Bom.) and J. Raghottama Reddy v. I.T.O. (1988) 169 ITR .174 (AP) ref. B. S. Ahuja and B. Krishna Prasad, Advocates for Appellant. A. V. Rangam and A. Ranganadhan, Advocates for Respondent. This appeal is against the High Court's order rejecting the application made under section 256(2) of the Income Tax Act, 1961 to call for a reference on the following question of law, namely: ‑‑‑ "Whether, on the facts and in the circumstances of the case, the Income‑tax Appellate Tribunal was right in law in upholding the order of the Commissioner of Income‑tax (Appeals) directing the Income‑tax Officer to exclude the capital gains arising from the transfer of agricultural lands from the assessment? 'The High Court rejected the application of the decisions in Manubhai A. Sheth v. N.D. Nirgudkar, Second I.T.O. (1981) 128 ITR 87 (Bom.) and J. Raghottama Reddy v. I.T.O. (1988) 169 ITR 174 (AP). However, an Explanation has been inserted in clause (1 A) of section 2 of the income‑tax Act by the Finance Act, 1989, with retrospective effect from April 1, 1970, to overcome the effect of those decisions. This being so, the aforesaid question of law does arise out of the Tribunal's order. Consequently, the appeal is allowed with the result that the application made under section 256(2) of the Act for reference of the above question of law is allowed. M.B.A./443/FC Appeal allowed.