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TMI Blog2006 (8) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/1994 - - - Dated:- 18-8-2006 - R.S. GARG and M.R. SHAH JUDGMENT The judgment of the court was delivered by R.S.GARG J.- Mr. B.B. Naik, learned counsel for the Revenue. 2. Present Reference, under Section 256(1) of the Indian Income Tax Act, has been made by the Income Tax Appellate Tribunal, Ahmedabad Bench "A", at the instance of the Revenue which is dissatisfied with the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to the Reference, are that the non-applicant assessee company is engaged in the business of construction of property, one of the building properties was included in the Closing Stock in the Balance Sheet drawn for the business. The assessee filed revised Return submitting that a part of its property was given on rent and the income derived on that basis should be computed under the head "Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore any income derived under the head of "Rent"would also become income from the property, it accordingly allowed the Appeal and directed reconsideration of the matter. 5. Mr. Naik, learned counsel appearing for the Revenue, submits that if the property is used as a property, then any income derived from the property would be an income from property, but if the property is used as a stock, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -in-trade", then the said property would become or partake the character of the stock, and any income, derived from the stock, would be "income" from the business, and not income from the property. If the business of the assessee is to construct the property and sell it or to construct and let-out the same, then that would be the "business" and the business stocks, which may include movable and im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cept for the ground-floor, which has been let-out by the assessee, all other portions of the property constructed have been sold out. If that be so, the property, right from the beginning was a "stock-in-trade". 10. Agreeing with the submissions made by Mr. Naik, learned counsel for the Revenue, we hold that the Tribunal was not correct in granting the Appeal of the assessee. 11. For the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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