9911796707
TMI Blog2014 (5) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... subdivided the plots and obtained necessary permission from municipal authorities - The Assessee had thereafter retained the plots for many years and therefore the act of Assessee in selling the same cannot be treated as business income – Revenue could not controvert the findings of CIT(A) nor has brought any material in its support – thus, the order of the CIT(A) upheld – Decided against Revenue. - I.T.A. No. 2874/AHD/2010 - - - Dated:- 24-4-2014 - Shri D. K. Tyagi, J. M. And Shri Anil Chaturvedi, A.M.,JJ. For the Appellant : Shri K. C. Mathews, Sr. D. R. For the Respondent : Shri Mukund Bakshi, A. R. ORDER Per Shri Anil Chaturvedi,A.M. 1. This appeal is filed by the Revenue against the order of CIT(A)-VI, Bar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me is shown at Rs. 17,34,758/-. In respect of sale of value of plot, the Assessee has shown this income as capital gain and in respect of construction work on the said land the assessee has shown the same as income from business. Since the entire activity undertaken on the land is a composite activity, the treatment given by the assessee treating some portion of income as capital gain and some portion of income as business income cannot be accepted. The entire profit of Rs. 17,34,758/-, was therefore, rightly treated by theA.O. as business income Though Revenue has raised 2 grounds but both the grounds are interconnected and therefore considered together. 4. During the course of assessment proceedings AO noticed that Assessee had got ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suring 6157 sq. ft. would be a transaction in the nature of conversion of a capital asset into stock in trade as envisaged u/s.45 (2) providing the taxation of the sale proceeds as capital gains up to the market value on the date of its conversion and the sale proceeds in excess of the market value of the capital ass-et on the date of conversion, as business income. From the records, it is seen that the sale of the proportionate land, FSI in respect of two plots is sold during the same year when the two plots are converted for business purposes and sold at the same value as it existed on the date of conversion during the year. I, therefore, have no hesitation in holding that the transaction of sale of plots is an independent transaction of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
