BHOGILAL BHAICHANDBHAI vs. COMMISSIONER OF INCOME TAX

ITR/151/1986HC GujaratGJHC24010775198610 July 2001Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages
AI SummaryDismissed

What were the facts?

This case involves an Income Tax Reference No. 151 of 1986 before the High Court of Gujarat at Ahmedabad. The reference was made at the instance of the assessee, Bhogilalbhaichandbhai, by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C', under Section 256(1) of the Income Tax Act, 1961. The dispute concerns the taxability of capital gains arising from the sale of agricultural land. The assessee was represented by Mr. J.P. Shah, and the Commissioner of Income Tax was represented by Mr. Manish R. Bhatt. The judgment was delivered on July 10, 2001.

What did the High Court hold?

The High Court held that the capital gain arising on the sale of agricultural land was liable to tax. The Court's decision was based on the law laid down by the Honourable Supreme Court in the case of Singhai Rakesh Kumar v. Union of India, reported in 247 ITR 150. The Court answered the referred question in the affirmative, in favour of the revenue and against the assessee. The reference was disposed of with no order as to costs. No issues were expressly left undecided.

What were the issues?

The Tribunal had to decide one question of law: Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the capital gain arising on sale of agricultural land was liable to tax? The assessee contended that capital gains arising from the sale of agricultural land should not be taxable. The revenue contended that such capital gains are taxable. The judgment does not explicitly detail the arguments or precedents cited by either the assessee or the revenue beyond the general nature of the dispute.

Which sections of the Income-tax Act were involved?

Section 256(1)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 151 of 1986

For Approval and Signature:

Hon'ble MR.JUSTICE A.R.DAVE and Hon'ble MR.JUSTICE D.A.MEHTA

============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements?

2.

To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement?

4.

Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

5.

Whether it is to be circulated to the Civil Judge? : NO ----

The order continues below.

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