S.C : Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that in case capital gains arising from the sale of agricultural land are to be taxed, the assessee has the option to substitute its cost as on 29th Feb., 1970, the date from which the agricultural lands, due to an amendment in law, became an asset ?

Counsel Appeared

M.L. Verma with Asha G. Nair, Shankar Divali & S.K. Dwivedi, for the Appellant : Shekhar Prit Jha, for the Respondents

JUDGMENT

BY THE COURT :

The High Court of Punjab & Haryana declined to call for a reference at the behest of the Revenue, of the following question : “Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that in case capital gains arising from the sale of agricultural land are to be taxed, the assessee has the option to substitute its cost as on 29th Feb., 1970, the date from which the agricultural lands, due to an amendment in law, became an asset ?” It did so because in its view no referable question of law arose.

2. It is difficult to agree with the High Court for it seems to us clear that the question is a question of law and requires the consideration of the High Court. Accordingly, the appeals are allowed. The orders under appeal are set aside. The Tribunal shall refer to the High Court for its consideration the question above-quoted, having drawn up statement of case.

No order as to costs.

Decision in favour of Revenue.

[Citation : 249 ITR 413]