ADDITIONAL COMMISSIONER OF INCOME TAX Vs. TARACHAND JAIN

JUDGEMENT

(1.) ON being directed by this court under Section 256(2) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal, Patna Bench, has made statement of the case on the undermentioned question of law :

(2.) IN terms of Section 45 of the Act any profits and gains arising from the transfer of " Capital asset" is chargeable to income-tax under the head " Capital gains " and is treated to be the income of the previous year in which the transfer took place. " Capital asset " has been defined in Sub-section (14) of Section 2 of the Act as not including, inter alia, agricultural land in INdia. Subsequently, however, by an amendment made in the year 1970, " agricultural land " which is not to be included in the " capital asset" has been restricted. Since, however, the restriction does not affect the assessment in question, it is not necessary to mention it. All that is necessary to be stated is that " capital asset" did not include agricultural land in INdia.

(3.) THE department being aggrieved by this decision has got the matter referred for opinion of this court.