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TMI Blog2014 (1) TMI 1591X X X X Extracts X X X X X X X X Extracts X X X X ..... ee with the intention to sell the property, to earn profit by indulging in several transactions of sale or to earn profit on its investment - The sale of agricultural plot was not by way of business purpose - Decided against Revenue. - Income Tax Appeal No. - 222 of 2011 - - - Dated:- 12-12-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the Appellant : Shambhu Chopra (S.C.) ORDER 1. We have heard Sri Shambhu Chopra for the appellant-department. 2. This Income Tax Appeal under Section 260-A of the Income Tax Act 1961 arises out of an order dated 14.03.2011, passed by the Income Tax Appellate Tribunal Lucknow Bench 'B', Lucknow in ITA No. 431/Luc10 for the assessment year 2006-07. 3. The appeal has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the CIT (A), while allowing the appeal, held as follows:- "5.1 I am in agreement with appellant's submission. The farm land was being held by the appellant for almost 11 years. It was being held as a capital asset and was clearly shown so in the balance sheet. The long period of holding itself indicates that the purpose was not that of trading. The AO has laid overemphasis on not only what is written in the memorandum but also in which part of the object clause, such a thing has been mentioned. In my considered view, for the purpose of I.T. proceedings, Memorandum of Articles of a company does not have any significant bearing on the taxability or otherwise of a receipt or the head under which the income has to be taxed. The transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee and its acceptance by the department in earlier years has no merit as the assessee being an artificial juridical person could not have involved into these activities. Each assessment year is a distinct unit. 8. We have considered the findings recorded by CIT (A) as affirmed by the Tribunal, and find that though the main object of the Company was to buy and sell properties, as per memorandum of association, the property in question was purchased by the assessee in the year 1993. It was shown as fixed asset by the Company in the balance sheet for 11 years, the agricultural income from the property was accepted by the department in the earlier years. The land was sold by a single transaction in the year 2005-06. On these facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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