The reference related to the Assessment Years 1981 82 and 1983 84.
He made capital gains thereon and the Income Tax Officer made him liable to capital gains tax.
In the previous years relevant to the Assessment Years 1981 82 and 1983 84 the assessee sold agricultural lands which were situated within the municipal limits of Bina.
The writ petition asked the H gh Court to declare as unconstitutional the Explanation to sub section 1A and clause iii of sub section 14 of Section 2 of the Income Tax Act, 1961 and to declare that capital gains arising from the sale of agricultural lands within a municipal are were number liable to capital gains tax under the Income Tax Act, 1961.
From the order of the Tribunal the question aforestated was referred to the High Court.
The first appellate authority agreed with the Income Tax Officer and the assessee approached the Tribunal.
The Tribunal held that the profit on the sale of agricultural lands was number capital gains within the meaning of the provisions of the ncome Tax Act, 1961.
Pending the reference, the assessee filed in the High Court the writ petition the order upon which is impugned.
Bharucha, J. LITTTTTTJ Under challenge are the orders of a Division Bench of the High Court of Madhya Pradesh dismissing a writ petition filed by the appellant assessee and answering against him a reference made by the Income Tax Appellate Tribunal of the following question Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the profit arising from the sale of agricultural lands did number amount to capital gains within the meaning of Income Tax Act, 1961?
