2015 (7) TMI 1156

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..... ital gains'' - Held that:- We find from the records that the assessee since inception had disclosed the purchase of lands under the head 'Investment' and the assessee had also disclosed these plots under the same head upto date of sale of plots in the balance sheet. The assessee had also shown certain stocks in land under the head 'Inventories' during the year. It proves that assessee's intention .....

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..... me from Capital gains'' instead of ''Income from Business and Profession'' as held by the AO.'' 2.1 Brief facts of the case are that the assessee is engaged in the business of investment in long term and short term capital gain in property. The assessee filed the return on 31-10-207 at ₹ 1,34,14,320/-. The case of the assessee was scrutinized u/s 143(3) of th .....

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..... as no objection in treating so provided no penalty u/s 271 (1) (c) is initiated against the assessee on this issue. The AO after considering the assessee's reply and various case laws cited in his order, assessed the total sale proceeds from sale of plots as business income. 2.2 Being aggrieved by the order of the AO, the assessee carried the matter before the ld. CIT(A) who had partly allowe .....

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..... and the ld. DR drew our attention on ld. AR's submission that assessee had openly admitted before the AO that the sale proceeds are trading assets and not capital assets. Therefore, the ld. CIT(A) was wrong in changing the head of income from business income to long term capital gain. 2.4 At the outset, the ld. AR of the assessee argued that the assessee has maintained two portfolios in book .....

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..... der the head 'Inventories' during the year. It proves that assessee's intention was clear at the time of acquiring these plots for the purpose of investment. Therefore, we do not find any reason to interfere in the order of ld. CIT(A) which is sustained. Thus the solitary ground of the Revenue is dismissed. 3.0 In the result, the appeal of the Revenue is dismissed. Order pronounced i .....

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