2014 (4) TMI 865

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..... income from capital gains and not income from business – Held that:- The AO in adopting the view had not spelt out any material based on which such conclusion was reached - The Revenue does not dispute the fact that the assessee was carrying on business only in insurance, the income returned from business as negative - the assessee had gone for a joint venture agreement for development of the prop .....

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..... e Tax Case (Appeal) filed for the assessment year 2007-08. Whether under the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in that the sum of Rs.2 crores received by the assessee pursuant to the MOU entered into by it for joint development of its property is assessable under the head income from capital gains and not income from business? 2. The a .....

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..... Income Tax Appellate Tribunal. 4. On an overall material consideration, the Income Tax Appellate Tribunal came to the conclusion that there was no evidence or material produced by the Revenue that the property in question held by the assessee for more than five decades was converted into stock-in-trade. In the absence of any evidence to show that Memorandum of Understanding in question was in .....

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..... es and that it had been carrying on business only in insurance. The consistent case of the assessee is that when it had entered into joint venture agreement, it had decided to retain 19,300 sq.ft of developed area or a cash compensation of Rs.2 crores in lieu there off. The assessee contended that the ownership of the property was never transferred to the developer in absolute terms and never it w .....

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..... ness and that the assessee was engaged in property development. Leaving aside the fact that the said venture as a solitary instance, as rightly pointed out by the Income Tax Appellate Tribunal, the Revenue had not placed any material to show that the property in question was to be treated as business asset or the assessee converted it into stock-in-trade for the purpose of carrying business with .....

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