Akil Abdul Hamid Kureshi, J.

1. The Revenue is in appeal against the judgement of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 18.8.2010. While admitting the appeal, following substantial questions of law were framed:

"(A) Whether the Tribunal below committed substantial error of law in holding that the land in question was an agricultural land by totally misinterpreting the provisions contained in Section 194LA of the Income Tax Act including the explanation given thereto.

(B) Whether the Tribunal below committed substantial error of law in holding that the land in question is an agricultural land by not following the principle laid down by the Division Bench of this Court in the case of Maganlal Morarbhai v. Commissioner of Income Tax reported in (1979) 118 ITR 224."

2. Brief facts are as under. The respondent Special Land Acquisition Officer, Surat, represents the State Government as an assessee. For the assessment year 2008-2009, the question of requirement of depositing tax at source under section 194LA of the Income Tax Act, 1961 ("the Act" for