9911796707
TMI Blog2011 (8) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. The assessee is a partnership firm carrying on the business of dealing in grocery items at Mangalore in a rented premises. At the first instance, the partnership firm was consisting of Sri Annappa Pai and Smt. Shoba S Pai. They started the business under the name and style of "Pai Provision Stores" from 18.05.1984. The written partnership deed was executed on 05.07.1984. On 17.09.1986, the assessee purchased an immovable property measuring 12.96 cents with an old building measuring 4657 Sq. feet in area and another land measuring 2.39 cents containing foundation of building on 24.09.1988. Subsequently, another partnership deed was executed on 18.12.1988 indicating five more persons, who are none other than the sons of T.Annappa Pai. Clau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as trading activity. The long gap between the first sale and subsequent sale will itself go to show that investment has been made to meet the capital so as to house business of the assessee in the constructed building. Therefore, the Tribunal accepted the claim of the assessee and accordingly, set aside the order of assessment. Aggrieved by the same, the revenue is before this Court. 4. The tax effect for the assessment year 1996-97 is Rs. 2,31,632/-. For the assessment year 1997-98, it is Rs. 1,05,808/- and for the assessment year 1999-2000, it is Rs. 78,488/-. If all the three years tax due is taken cumulatively, it exceeds Rs. 4,00,000/-. Therefore, it is submitted that the Revenue has preferred these appeals though in case of tax e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property to different tenants and also carrying on business. So, the overall evidence on record discloses that though the assessee purchased the land, constructed building and sold some portions of the same, the said sale is not with the object of making any profit. It is to wipe out the liability they had incurred for the development of the property. The very fact that in a span of 10 years, there is admittedly only four sales and the remaining property continue to be in possession of the assessee and the same has been let out to different tenants and the assessee is earning income by way of rents and also carrying on business, clearly demonstrates that they are not in the business of sale and purchase of immovable property notwithstanding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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