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TMI Blog2016 (12) TMI 1797X X X X Extracts X X X X X X X X Extracts X X X X ..... rt term capital gain transaction. Accordingly, the action of the lower authorities are confirmed. This ground of appeal is, therefore, dismissed. Income from house property after allowing deduction of interest u/s 24 - HELD THAT:- Assessee has claimed this purchase and sale of this house property and shown business income thereon at ₹ 3964/- by computing separate trading account. However, the lower authorities have found that the assessee is not engaged in the business of real estate, as this was a solitary transaction conducted by the assessee. Therefore, the income from this property was assessable as income under the head Capital Gain. Accordingly, short term capital gain of ₹ 19,61,000/- was worked out and assessed accordingly. We also find that the assessee has raised his alternative plea before the ld. CIT(A). However, the same was not found acceptable by the ld. CIT(A) on the ground that no such claim was made before the AO and the issue under consideration was not working of income from house property, but the issue of income is assessable under the head Capital Gains. In view of these facts, we find that the issue has not been examined by the AO and by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... successive year. The assessee has not maintained separate books of accounts for business of trading in property. The AO also noted that the assessee has neither opening balance nor closing balance of the property. No fixed expenditure for running a separate business have been booked by the assessee and the assessee has shown only one house property during year under consideration, which was purchased by him in his individual capacity by taking housing loan. Therefore, the AO was of the opinion that the transaction of purchase of immovable property was claimed as business transaction by the assessee just to reduce the profit from his contractorship business. The AO also noted that the assessee has shown main profit from contract business at 8.02 % of his total receipt from contract, whereas after considering the trading account of this house, the net profit rate comes to 5.68 %, which is very low in comparison to 8 % net profit rate in such type of business. Therefore, the AO treated the said transaction of sale of immovable property as short term capital gain and computed short term capital gain at ₹ 19,61,000/- ( ₹ 1,52,00,000/- (-) ₹ 1,32,39,000/-). 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase. The house property is registered in his name on which stamp duty payment has also been made. Therefore, the assessee has purchased a capital asset, which has been sold in a very short span of time. Therefore, in the light of these facts, we are of the considered opinion that the lower authorities has rightly treated the same as short term capital gain transaction. Accordingly, the action of the lower authorities are confirmed. This ground of appeal is, therefore, dismissed. 10. Ground nos. 2 3 are the alternative grounds of appeal by which the assessee contended that the ld. CIT(A) ought to have computed the income from house property after allowing deduction of interest of ₹ 14,60,076/- u/s 24 of the Act, if the transaction of sale and purchase of the house was not assessable as income from business and profession and the ld. CIT(A) also erred in not allowing deduction of lease rent and transfer fee etc. to ₹ 4,98,960/- incurred by the assessee for acquisition of the house, while computing the total income of the assessee. 11. The facts apropos of the above grounds are that the assessee has purchased the house property on 25.02.2011 for & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest paid on housing loan of ₹ 14,60,076/- may be deducted u/s 24(b) of the Act. According to the ld. Authorized Representative of the assessee, the income is computed from house property and was worked out at negative figure at ₹ 13,42,476/-. 14. On the other hand, the ld. Sr.Departmental Representative supported the orders of the lower authorities and submitted that no such claim was made by the assessee during the course of assessment proceedings. The assessee has not disclosed the income from house property. Therefore, there was no question to compute the income from house property as the assessee has not made any such claim in the return of income. 15. We have heard the facts and find that the assessee has claimed this purchase and sale of this house property and shown business income thereon at ₹ 3964/- by computing separate trading account. However, the lower authorities have found that the assessee is not engaged in the business of real estate, as this was a solitary transaction conducted by the assessee. Therefore, the income from this property was assessable as income under the head Capital Gain. Accordingly, short term capital gain o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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