N. BAGAVATHY AMMAL vs COMNR. OF INCOME TAX, MADURAI

The Supreme Court addressed the interpretation of 'assets' in Section 46(2) of the Income Tax Act, 1961, in relation to the definition of 'capital assets' under Section 2(14). The Court held that agricultural lands are excluded from the computation of capital gains under Section 46(2) due to the exemption provided in Section 47(viii). Consequently, the Income Tax Officer's assessment including the value of agricultural lands as capital gains was set aside, affirming the lower authorities' decisions.