Judgment Jawahar Lal Gupta, J. 1. The Tribunal has referred the following question for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the ITAT is right in law in upholding the decision of the Commissioner (Appeals) that capital gains arising from transfer of agricultural land located within the municipal limit, is not liable to capital gains tax ?" 2. Mr. Sawhney places reliance on the decisions in Tuhi Ram v. Land Acquisition Collector (1993) 199 ITR 490 (P&H) and Union of India v. S. Muthyam Reddy (1999) 240 ITR 341 (SC). 3. It is settled that income from sale of agricultural land is not agricultural income. Thus, the exemption from payment of tax on account of capital gains is not available to the assessee. Resultantly, the question is answered in favour of the revenue. 4. Since no one has put in appearance on behalf of the assessee, we make no order as to costs.