9911796707
TMI Blog2014 (2) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... . The learned CIT (Appeals) held that - "For the sake of convenience and at the cost of repetition the facts are that the Appellant who is the business of development of land as well as other activities. A plot of land attributable to their share at 145 Rash Behari Avenue, Kolkata was sold for a consideration of Rs. 15550000/-. The land was sold on 22.8.2003 and the book value of the land in the accounts of the Appellant for the asst. Yr. 2006-2007 was at Rs. 6523405/-. In the accounts of the Appellant for the Asst. Yr. 2006-2007 the land value of Rs. 6523405/- was shown as Investments. The Appellant worked out the Cost of Acquisition on Indexation at Rs. 7954387/- and the resultant long term capital gains of Rs. 7595613/- was offered for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivity carried out on the said land and no alterations or modifications were made in the land. (3) The Appellant did not purchase or sell any land or building during the period betwee 1999 to 2005. (4) The intention of the Appellant according to it in purchasing the land was for the purpose of investment and for leasing. (5) The sale of the land by the appellant was an isolated transaction and cannot by itself constitute a business transaction, even if one of the objects of the Appellant company was development. (6) There has been no activity on the land and there has been no purpose or organized activity for the sale of the land. (7) The appellant derived rental income from land held as a fixed asset. I have considered the arguments o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ains arose on the basis of applying a negative cost in consequence wherein no infirmity was found by the AO was therefore considered appropriately in the order of the ld. CIT(A) who accepted the sale of land was not the business activity for the impugned assessment year of the assessee and was to be considered for taxation on the basis of computation of capital gains done . We, therefore, uphold the same and have no hesitation in dismissing the appeal filed by the Revenue." The question whether the income arose out of any business activity or out of capital gain is essentially a question of fact or a mixed questions of law and fact. Both the CIT (Appeals) and the learned Tribunal agreed as regards the fact that the income arose out of capi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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