- (1.) OF law was referred to this Court by the Tribunal, Chandigarh Bench, Chandigarh, arising out of order passed in ITA Nos. 1176 -1177 of 1979 for the asst. yrs. 1974 -75 and 1975 -76 : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the decision of
(2.) THE brief facts are that the assessee sold some agricultural land during the assessment year in question and declared when amendment in s. 2(14) of the IT Act, 1961 (for short the Act) was made. Before this date, the agricultural land
(3.) THE Revenue went in appeal against the order passed by the AAC, to the Tribunal and failed. By rejecting the plea of the Revenue, the Tribunal relied upon a judgment of Hon'ble Supreme Court in the case of CIT vs. Bai Shirinbai K. Kooka (1962) 46 ITR 86 (SC), wherein it was held that where an assessee who held, by way of investment, certain shares in companies, commenced a business in shares converting the share into stock -in -trade of the business, and subsequently sold these shares at a profit, in that eventuality the assessee's assessable profits on sale of the shares was the difference between the sale price of the shares and the market price of the shares prevailing on the date when the shares were converted into stock -in -trade of the business in shares, and not the difference between the sale price and the price at which the shares were originally purchased by the assessee. No judgment taking a contrary view has been cited before us. In the present case also, by amendment in the Act, agricultural land became a capital asset on the sale of which capital gains tax became exigible so, applying the principles of law laid down in CIT vs. Bai Shirinbai K. Kooka (supra), the date of valuation of the capital asset will be the date when the agricultural land became capital asset.;