C.IT PATIALA vs. JOGINDER SINGH

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ITR/122/1989HC Punjab & HaryanaPHHC01022497198920 November 2006Bench: MR. JUSTICE ADARSH KUMAR GOEL,MR. JUSTICE RAJESH BINDAL2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, in its judgment dated November 20, 2006, answered the referred question of law in favour of the revenue and against the assessee. This decision was based on the Court's judgment rendered on the same day in ITR No. 67 of 1989, titled 'The Commissioner of Income Tax, Patiala v. Sardarni Devinder Kaur'. The reasoning behind this holding is not elaborated in this specific judgment but is stated to be consistent with the aforementioned related case. Consequently, the capital gains arising from the sale of land actually put to agricultural use are held to be liable to tax. The reference is disposed of accordingly, with the operative direction being the answer to the question in favour of the revenue.

What were the facts?

This case involves a reference to the High Court of Punjab and Haryana at Chandigarh concerning Income Tax Reference (ITR) No. 122 of 1989. The petitioner is the Commissioner of Income Tax, Patiala, and the respondent is Shri Joginder Singh. The reference arises from an order dated March 23, 1988, passed by the Income Tax Appellate Tribunal, Chandigarh Bench, in ITA No. 564 of 1985, pertaining to the assessment year 1977-78. The core of the dispute revolves around the taxability of capital gains derived from the sale of land that was actually used for agricultural purposes.

What were the issues?

The Tribunal referred the following question of law to the High Court for its opinion: 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the capital gains arising from the sale of land actually put to agricultural use, wherever located, are not liable to tax? The revenue's contention, as implied by the High Court's decision, is that capital gains from the sale of agricultural land are taxable. The assessee's position, as upheld by the Tribunal, is that such gains are not liable to tax, irrespective of the land's location, if it was actually used for agricultural purposes. The judgment does not explicitly detail the arguments presented by each side before the High Court, but it refers to a previous judgment in ITR No. 67 of 1989 (The Commissioner of Income Tax, Patiala v. Sardarni Devinder Kaur) which appears to be determinative of this matter.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITR No.122 of 1989 Date of decision:20.11.2006 The Commissioner of Income Tax, Patiala

....Petitioner versus Shri Joginder Singh ....Respondent CORAM: HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE RAJESH BINDAL Present: Mr. SK Garg Narwana, Advocate, for the revenue. JUDGMENT: Following question of law has been referred for the opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh, arising out of its order dated 23.3.1988 in ITA No.564 of 1985, for the assessment year 1977-78:- “Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the capital gains arising from the sale of land actually put to agricultural use, wherever located, are not liable to tax?” In view of our judgment rendered today in ITR No.67 of 1989 (The Commissioner of Income Tax, Patiala v. Sardarni Devinder Kaur), the question referred is answered in favour of the revenue and against the assessee. Reference is disposed of accordingly. (Adarsh Kumar Goel) Judge November 20, 2006

(Rajesh Bindal) 'gs' Judge

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