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TMI Blog2022 (3) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... that year. Before the close of the year ending on 31.3.2006, the assessee came to know about a litigation going-on on this plot. Development cost incurred from August, 2005 to October, 2005, was before the assessee coming to know of the litigation on the plot. The assessee did not undertake any business activity. Before close of the very first year itself, the assessee declared the cost of purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly been treated as Capital asset by the assessee, income from whose transfer is liable to be taken under the head `Capital Gains and not as Business Income. - ITA No.1516/PUN/2016 - - - Dated:- 15-3-2022 - Shri R.S. Syal, Vice President For the Appellant : Shri Hari Krishan For the Respondent : Shri M.G. Jasnani ORDER PER R.S.SYAL, VP : This appeal by the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-07-2005 for ₹ 19,53,390/-. Development expenses of ₹ 2.00 lakh were incurred on the said land. The assessee, on transfer of this land in the year under consideration, offered long term capital gain thereon. The AO held that the land was purchased for the purpose of carrying on business and not as an investment. He, therefore, computed business income of ₹ 12,81,610/- as against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tself, the assessee declared the cost of purchase of land and development expenses as `Investment under the head `Fixed Assets in its balance sheet. The position continued to remain the same in its balance sheets on 31-03-2007, 31-03-2008, during which the assessee continued to declare such Plot as `Investment . In the year under consideration, the assessee could manage to sell the property by i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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