9911796707
TMI Blog2023 (1) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... n furnished before us to justify its case in light of provisions of Sec.45(2) - assessee has held many lands and classified as stock-in-trade. Therefore it is very clear that the assessee was acquired the impugned land held for the AY 2003-04, for the purpose of commercial exploitation and further, the conduct of the assessee, including accounting in the books of accounts is also supports the case of the AO that the impugned land was held as stock-in-trade. Therefore, in our considered view, profit or loss derived from sale of land held as stock-in-trade is assessable under the head income from business or profession as assessed by the AO, but not assessable under the head capital gains as claimed by the assessee. Although, the assessee cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... donation of delay explaining the reasons for the delay has been filed. The learned counsel submitted that assessee could not file appeal within the time allowed under the Act, therefore delay may be condoned. Having heard both sides and considered the petition filed by the assessee for condonation of delay, we are of the considered view that reasons given by assessee for not filing the appeal within the time allowed under the Act comes under reasonable cause as provided under the Act for condonation of delay and hence, delay in filing of above appeal is condoned and appeal filed by the assessee is admitted for adjudication. 3. The assessee has raised the following grounds of appeal: 1. The order of The Commissioner of Income Tax (Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. The Appellant craves leave to file additional grounds/arguments at the time of hearing. 4. The brief facts of the case are that the assessee company is engaged in the business of construction and development of properties. During the financial year relevant to AY 2003-04, the assessee company had transferred a land at Vadapalani to M/s.Macro Marvel Projects Ltd., Chennai, for a consideration of Rs.2.46 crs. and computed long term capital loss at Rs.10,58,177/- after claiming indexed cost of acquisition. During the course of assessment proceedings, the AO noticed that the assessee main business activity is construction and real estate development and further, the assessee has classified land sold for the impugned assessment year as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been converted into investment, because, the assessee had entered into a Joint Development Agreement with third party for development of the land at Vadapalani. Further, the assessee transferred the entire land to the nominees of third party during the financial year relevant to AY 2003-04 and accordingly, admitted profit or loss derived from sale of land under the head 'capital gains'. The ld.CIT(A) after considering relevant submissions of the assessee and also taken note of various facts observed that the assessee was in the business of construction and real estate development. Further, the assessee has classified all land held by it under the head 'capital assets' as stock-in-trade, including the impugned land sold in the relevant asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including impugned land sold for the assessment year. Although, the assessee claims to have converted stockin- trade into investment for the AY 2002-03, but there is no evidence with the assessee to justify its arguments that it has satisfied conditions prescribed u/s.45(2) of the Act. Therefore, the AO has rightly assessed profit or loss under the head 'income from business' and their orders should be upheld. 8. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. The facts borne out from the record clearly indicate that the assessee was in the business of construction and real estate development. It was also not in dispute that the assessee had held the impugned land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to derive the benefit of indexation, otherwise, all evidences including accounting system clearly suggest that impugned land sold by the assessee was stock-in-trade and profit or loss derived from sale of said land is assessable under the head 'income from business or profession'. Therefore, we are of the considered view that there is no error in the reasons given by the AO as well as the Ld.CIT(A) to assess profit or loss derived from sale of land under the head 'income from business or profession' and thus, we are inclined to uphold the findings of the Ld.CIT(A) and dismiss the appeal filed by the assessee.
9. In the result, appeal filed by the assessee is dismissed.
Order pronounced on the 11th day of January, 2023, in Chennai. X X X X Extracts X X X X X X X X Extracts X X X X
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