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TMI Blog2015 (1) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... ATE FOR THE RESPONDENT : MR RK PATEL, ADVOCATE JUDGEMENT JUDGEMENT Per: K S Jhaveri: 1. By way of this appeal, the appellant-revenue has challenged the judgment and order dated 16.02.2005 passed by the Income Tax Appellate Tribunal, Ahmedabad [for short the Tribunal ] in ITA No. 480/Ahd/1997, whereby the appeal filed by the revenue was dismissed by the Tribunal. 2. The facts, in brief, are that the the assessee is a partnership firm engaged in the business of real estate and also running a theatre. In the year 1971, the assessee acquired a piece of land through lease deed. The assessee constructed two threatres on the said land and started earning income by exhibiting films as well as rental income from some of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after appreciating the evidence on record has passed its order. Therefore, he contended that there is no germane reason to interfere with the order of the Tribunal. He further submitted that the present appeal deserves to be dismissed in view of the concurrent finding of both the authorities namely the Tribunal and the CIT(A). 6. We have heard learned advocates appearing for both the parties and perused the material on record. While deciding this appeal, the Tribunal in paragraph No.5 has observed as under:- 5. We have heard the ld. representatives of the parties and perused the record. The assessee acquired land through lease agreement in 1971. The assessee constructed threatre building and started the business of firm ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his order. Section 45(2) provides for chargeability of capital gains arising in a case where a capital asset is converted by its owner into, or is treated as stock-in-trade of a business carried on by him. Sub-clause (iv) of section (2) 47 is also provide that conversion of a capital asset into, or its treatment as stock-in-trade of business carried on by its owner shall be deemed as transfer . The combined reading these sections is that capital arising on conversion of a capital asset into stock-in-trade are charged to tax in the previous year in which such converted asset is actually sold or otherwise transferred but it never says that capital gain are chargeable to tax in the previous year in which the transfer by way of conversion take ..... X X X X Extracts X X X X X X X X Extracts X X X X
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