| Case ID |
e8f1da08-fd20-4abe-8222-43756cc13e13 |
| Body |
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| Case Number |
Civil Appeals Nos. 4001 to 4004 of 1982 |
| Decision Date |
Sep 14, 1993 |
| Hearing Date |
|
| Decision |
The Supreme Court affirmed the Gujarat High Court's decision that the land in question was not agricultural land at the time of sale and that the profit from its sale was liable to capital gains tax. The Court noted that the appellants had no intention to cultivate the land after 1965-66 and had entered into an agreement to sell the land for non-agricultural purposes. The Court emphasized that the determination of whether land is agricultural or not is a question of fact, requiring a cumulative consideration of all relevant factors. The findings indicated that the land's usage, location, and the nature of the transactions significantly outweighed the circumstances favoring the appellants' claim of its agricultural status. |
| Summary |
This case involves the Supreme Court of India examining the classification of land as agricultural or non-agricultural for the purposes of capital gains tax under the Income Tax Act, 1961. The appellants, co-owners of a plot of land situated within the municipal limits of Surat, argued that the land was agricultural based on its registration in revenue records and past cultivation. However, the Court found that several factors indicated the land was non-agricultural at the time of sale, including its sale to a housing society for construction purposes and the lack of cultivation for an extended period prior to the sale. The decision emphasizes the need for a factual determination of land use and the implications for capital gains tax assessments. This case highlights the complexities of land classification in tax law and the importance of evidence in determining agricultural status. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
B.P. Jeevan Reddy,
S. P. Bharucha
|
| Lawyers |
B.K. Mehta, Senior Advocate,
S.C. Patel, Advocate,
S.C. Manchanda, Senior Advocate,
K.P. Bhatnagar, Advocate,
D.S. Mahra, Advocate,
Ms. A. Subhashini, Advocate
|
| Petitioners |
SARIFABIBI MOHMED IBRAHIM and others
|
| Respondents |
COMMISSIONER OF Income Tax
|
| Citations |
1995 SLD 4,
1995 PTD 132,
(1993) 204 ITR 631
|
| Other Citations |
CIT v. Sarifabibi Mohmed Ibrahim (1982) 136 ITR 621,
C I T v. Raja Benoy Kumar Sahas Roy (1957) 32 ITR 466 (SC),
CIT v. Siddharth J. Desai (1983) 139 ITR 628 (Guj.),
CIT v. Trivedi (V.A.) (1988) 172 ITR 95 (Bom),
CWT v. Officer-in-Charge (Court of Wards), Paigah (1976) 105 ITR 133 (SC),
Officer-in-Charge (Court of Wards) v. CWT (1969) 72 ITR 552 (AP) (FB),
Sarojini Devi v. Sri Kristna (1944) AIR 1944 Mad. 401
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
2(14),
45,
47(iii)
|