SING HAI RAKESH KUMAR versus UNION OF INDIA AND ORS.

SING HAI RAKESH KUMAR versus UNION OF INDIA AND ORS.

Income arising from the transfer of agricultural land situated within municipal limits is not agricultural income as defined for income-tax purposes and is therefore liable to capital gains tax under Section 45 of the Income Tax Act, 1961; Parliament's statutory definition and amendments are valid.

Parties
Appellant: Sing Hai Rakesh Kumar; Respondents: Union of India and Ors.
Jurisdiction
India
Judgment Date
28 November 2000
Procedural Posture
Civil Appeal / Appeal From Madhya Pradesh High Court Judgment Dated 8.4.96
Outcome
Appeals dismissed with costs.
Legal Topics
Agricultural Income Definition, Capital Gains Tax on Sale of Land Within Municipal Limits, Parliament's Power to Define Agricultural Income
Tax Law Constitutional Law Agricultural Income Definition Capital Gains Tax on Sale of Land Within Municipal Limits Parliament's Power to Define Agricultural Income

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Parties

Sing Hai Rakesh Kumar

Appellant

Union of India and Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Madhya Pradesh High Court Judgment Dated 8.4.96

Legal Issues

  1. 1 Whether income arising from sale of agricultural lands situated within municipal limits is liable to capital gains tax under Income Tax Act, 1961
  2. 2 Whether Parliament has the power to define agricultural income for the purposes of the Constitution of India, 1950

Ratio Decidendi

Income arising from the transfer of agricultural land situated within municipal limits is not agricultural income as defined for income-tax purposes and is therefore liable to capital gains tax under Section 45 of the Income Tax Act, 1961; Parliament's statutory definition and amendments are valid.

Court Disposition

Appeals dismissed with costs.

Orders

  • Appeals dismissed.
  • High Court's decision affirmed.