1. Leave granted.
2. This appeal is against the High Court's order rejecting the application made under section 256(2) of the Income Tax Act, 1961 to call for a reference on the following question of law, namely:--- "Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was right in law in upholding the order of the Commissioner of Income-tax (Appeals) directing the Income- tax Officer to exclude the capital gains arising from the transfer of agricultural lands from the assessm ent?"
3. The High Court rejected the application in view of the decisions in Manubhai A. Sheth v. N.D.
4. Nirgudkar, Second ITO (1981) 128 ITR 87 (Born.) and Raghottama Reddy v. ITO (1988) 169 ITR 174 (AP).
5. However, an Explanation has been inserted in clause (1A) of section 2 of the Income-tax Act by the Finance Act, 1989, with retrospective effect from April 1, 1970, to overcome the effect of those decisions.
6. This being so, the aforesaid question of law does arise out of the Tribunal's order.
7. Consequently, the appeal is allowed with the result that the application made under section 256(2) of the Act reference of the above question of law is allowed. . revisions by the competent authorities. Therefore, it is advisable to consult the official sources or legal professionals for the most up-to-date and accurate information.