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TMI Blog2014 (10) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... el directly by the owner of the property with these eight persons as consenting witnesses - The entire sale consideration was received by these eight members from M/s. Intel as they had paid the entire sale consideration agreed upon and payable to the owner of the property - the transaction being a solitary transaction entered into by the assessees and in the absence of any material to show that they were in the same business and they have entered into such agreement and that they have sold such properties, it is not possible to accept the contention of the Revenue that the transaction is in the nature of trade or adventure – thus, the order of the Tribunal is upheld – Decided against revenue. - Income Tax Appeal No.810/2008, Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imited had set out its requirements and also indicated the broad terms on which it was prepared to enter into an agreement and specifically sought for offers from these builders. The enquiry letter was preceded by informal talks between the top personnel of the Company and top representatives of many of the builders including M/s. Prestige Group of Companies and that letter was only a formalization and what has been discussed earlier. On 30.11.2000, with the consent of original eight purchasers, M/s. GE Power Controls India Pvt. Ltd., entered into a direct agreement for sale of the same property with M/s. Intel for a consideration of ₹ 13.50 crores, where the eight original purchasers were the confirming parties. As the confirming par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an appeal before the Commissioner of Income Tax (Appeals), who affirmed the order of the Assessing Authority, against which the assessees preferred an appeal to the Income Tax Appellate Tribunal, Bangalore. 4. The Tribunal held, nowhere the authorities below had tried to bring out a situation when the assessees' action and intention could be termed as adventure in the nature of trade insofar as the very effort of buying and selling has been established by the assessee to render income so generated as short term capital gains. The property belonged to six owners and these two assessees also became the owners and in view of the fact that M/s. GE Power Controls India Pvt. Ltd. having delivered vacant possession to them had received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder has become final. It is against the said order, the Revenue has preferred these appeals. 5. These appeals were admitted on 9.7.2009 and 6.7.2009 respectively to consider the following substantial question of law: Whether the Tribunal was correct in holding that the income earned by the assessee on the sale of property at Airport Road should be brought to tax under the head capital gains and not under the head business income as held by the Assessing Officer and confirmed by the Appellate Commissioner based on cogent evidence? 6. The learned Counsel for the Revenue assailing the impugned order contended that the assessees have not shown their investments in their returns. They did not enter into an agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Department has accepted the income in the hands of the other six owners as capital gains. It is only when it comes to the case of assessees as Directors of M/s. Prestige Group of Companies and that they are in the business of developing properties, the assessees' case of short term capital gains is not acceptable. 9. In the light of the facts and circumstances of the case, we are satisfied that the transaction in question being a solitary transaction entered into by the assessees and in the absence of any material to show that they were in the same business and they have entered into such agreement and that they have sold such properties, it is not possible to accept the contention of the Revenue that the transaction in questio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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