2015 (5) TMI 728

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..... o test as to whether it is in the nature of trade or sale of investment. A holistic and overall view of the transaction has to be taken. Upon taking that and finding that the plot was allotted but could not be utilized by manufacturer of cotton and yarn that the subsequent developments took place. It is only in the year 2005 and for the first time the assignment of leasehold interest took place. It was not a sale or transfer of property by the assessee for a profit but since use could not be made, that initially a conversion permission was sought but even thereafter a utilization of the property for the assessee's purpose did not come through. It is in these circumstances that the assignment with the consent of CIDCO has taken place. The .....

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..... ite in nature could not be termed as arising out of the rights in the immovable property but it was adventure in the nature of trade. In other words, the assessee only had a leasehold interest in the immovable property which belong to the public body, namely, City Industrial and Development Corporation of Maharashtra (for short CIDCO ). The lease was obtained by the assessee for construction of a corporate office on the land. That the office could not be set up but the assessee approached the CIDCO so as to assign leasehold interest for the remainder of the term in favour of a third party but incurred expenditure, took steps for conversion of the user of the land would denote that this is an adventure in the nature of trade. The gains cann .....

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..... 2005 and it was decided to transfer the leasehold rights to the buyer for a consideration of ₹ 2,95,55,000/-. Thereafter application was made to the CIDCO for grant of permission to assign these leasehold rights in the plot to the buyer. The CIDCO granted such permission, the tripartite agreement dated 24th March, 2005 was executed and the assessee received the impugned consideration. It is in this overall perspective that the Tribunal considered the matter. It applied the relevant tests and as laid down by the Hon ble Supreme Court in the case of G. Venkataswami Naidu and reaffirmed later. The Tribunal concluded that having regard to these tests, it is clear that a solitary or single transaction may be termed as adventure in the nat .....

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